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

Assignment Help:

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".


Related Discussions:- First in first out or fifo method - work in progress

Calculate the cumulative cash flows, Assume that you are the purchaser of t...

Assume that you are the purchaser of the building at the end of the construction period, and you have paid the developer an amount which gives you a 7% annual return on net revenue

What is life-cycle costing, Consider the following information, prepared ba...

Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs

Capital, Capital We have seen previous in this section that the fundame...

Capital We have seen previous in this section that the fundamental accounting equality states as: Assets = liabilities + owners equity. From the illustration of balanc

Absorption costing, Absorption Costing The process described in this s...

Absorption Costing The process described in this section by that net overheads are absorbed into production naturally enough is identified as absorption costing.  The absorpti

Realized gain or loss on the exchange, Pauline's Pastry Shop decides to rem...

Pauline's Pastry Shop decides to remodel its offices this year. As part of the remodeling, Pauline's trades furniture with a cost of $12,000 that had been expensed in the year of p

Activity Based Costing, How do I figure the estimated activity and estimate...

How do I figure the estimated activity and estimated allocation base?

Cash flow budget, the total (ie. aggregated) cashflows in respect to operat...

the total (ie. aggregated) cashflows in respect to operations, with details of annual cash inflows & annual outflows in respect to operations, the total (ie. aggregated) cashflo

Estimate the required rate of return, a)     Company X is expected to maint...

a)     Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If the company has a dividend yield of 4%, what is the required return on their

Direct materials total variance, Direct Materials Total Variance Direc...

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

Job-order costing, Division B uses  normal  costing in its job-order costin...

Division B uses  normal  costing in its job-order costing system, with manufacturing overhead  applied  based on direct labour hours.  You have obtained the following information a

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