Determine equivalent units of the product, Cost Accounting

Assignment Help:

Determine Equivalent Units of the Product

Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are 70 percent complete. What are the equivalent units of the product?

Solution

60% x 4,000 = 2,400 units completely complete.

40% x 4,000 = 1,120 units -Equivalent units

Net Equivalent units = 3,520 units

Assume we had net process costs of shs.7,040, after that every unit would cost shs.7,040/3,520 = shs.2


Related Discussions:- Determine equivalent units of the product

Equivalent value of any non-cash assets received, The principle that (1) re...

The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) m

Period costs, Period Costs Some terms are difficult to define. In one s...

Period Costs Some terms are difficult to define. In one school of thought, period costs are the any costs that are not product costs. But, such a description is a stretch, beca

Motivation - behavioural aspects of standards, Motivation - Behavioural Asp...

Motivation - Behavioural Aspects of Standards Variance analysis and standards setting requires to be carried out like it motivates managers and other employees. It should not

Process accounts, What is the easiest of calculate equivalents before produ...

What is the easiest of calculate equivalents before producing a process account 2

Price and quality aspect of variance, Price and Quality Aspect of Variance ...

Price and Quality Aspect of Variance At this point it is serious to understand that all variance has two aspects, a price aspect and a quantity aspect: these two aspects combi

Journal entry for sale of machinery, Rayya Co. purchases and installs a mac...

Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life

Financial accounting, Financial Accounting It is the analysis, and rec...

Financial Accounting It is the analysis, and recording and classification of financial transactions and the ascertainment of how that information will be reported to the diffe

Overhead analysis, allocate the overheads to the three departments and do t...

allocate the overheads to the three departments and do the secondary allocation of service departments

Important aspect regarding to service cost centres, Important Aspect Regard...

Important Aspect Regarding to Service Cost Centres The basis selected should be one that is judged to be the mainly equitable way of sharing the service costs of department

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd