First in first out or fifo method - work in progress, Cost Accounting

First In First Out or FIFO Method - Work in Progress

This method considers merely those costs incurred throughout the recent period.  Equivalent units are calculated given as:

Equivalent Units= Units completed and transferred + (Units in ending W.I.P x% of completion - Units in beginning)

 X  % of completion

Cost/Equivalent Unit = Current Costs /Equivalent Units

Carefully Notice here that FIFO differentiates the "units started and completed in the recent period" from the units transferred and completed. This is done with subtracting the "beginning W.I.P." from the "units finished and transferred" and "the ending work in process".

Posted Date: 2/7/2013 2:43:19 AM | Location : United States







Related Discussions:- First in first out or fifo method - work in progress, Assignment Help, Ask Question on First in first out or fifo method - work in progress, Get Answer, Expert's Help, First in first out or fifo method - work in progress Discussions

Write discussion on First in first out or fifo method - work in progress
Your posts are moderated
Related Questions
The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a

Material Handling The objective is to ensure about the goods are delivered to the right places at the right instance and in aright manner to ignore delays, unnecessary and con

You are a beginner accountant with a large accountancy firm and a training day has been organised to update all technical staff on a range of topics across numerous technical disci

The profit volume ratio of xltd. is 50% and the margin of safety is 40%.you are required to calculate the net profit if sales volume is rs.100,000?

manufacturing costs will not include a. indirect material used b. sales salaries expense c. indirect labor costs d. depreciation of factory equipment

MARGINAL COSTING Vs DIRECT COSTING Direct costing is the method where only direct costs are measured while calculating the cost of the product. Indirect costs are met in opposi

Why do we separate factory overhead from materials and labor?

The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employer's payroll taxes for the factory payroll are 8,000. The fringe ben

PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity

list and discus the problem encountered in adopting profit as a yardstick in measuring performance