【正文】 Overhead (Conversion) When direct labor is a relatively small amount pared to material and overhead, it is often bined with overhead. McGrawHill/Irwin 420 Equivalent Units: A Key Concept ?Costs are accumulated for a period of time for products in workinprocess inventory. ?Products in workinprocess inventory at the beginning and end of the period are only partially plete. ?Equivalent units is a concept expressing these partially pleted products as a smaller number of fully pleted products. McGrawHill/Irwin 421 Equivalent Units Example Two onehalf pleted products are equivalent to one pleted product. So, 10,000 units 70 percent plete are equivalent to 7,000 plete units. + = l McGrawHill/Irwin 422 For the current period, Jones started 15,000 units and pleted 10,000 units, leaving 5,000 units in process 30 percent plete. How many equivalent units of production did Jones have for the period? a. 10,000 b. 11,500 c. 13,500 d. 15,000 Equivalent Units Question 1 McGrawHill/Irwin 423 For the current period, Jones started 15,000 units and pleted 10,000 units, leaving 5,000 units in process 30 percent plete. How many equivalent units of production did Jones have for the period? a. 10,000 b. 11,500 c. 13,500 d. 15,000 10,000 units + (5,000 units .30) = 11,500 equivalent units Equivalent Units Question 1 McGrawHill/Irwin 424 Calculating and Using Equivalent Units of Production To calculate the cost per equivalent unit for the period: Cost per equivalent unit = Costs for the period Equivalent units for the period McGrawHill/Irwin 425 If Jones incurred $27,600 in production costs for the 11,500 equivalent units. What was Jones’s cost per equivalent unit for the period? a. $ b. $ c. $ d. $ Equivalent Units Question 2 McGrawHill/Irwin 426 If Jones incurred $27,600 in production costs for the 11,500 equivalent units. What was Jones’s cost per equivalent unit for the period? a. $ b. $ c. $ d. $ $27,600 247。 45,000 equivalent units $ + $ McGrawHill/Irwin 436 C o s t o f g o o d s c o m p l e t e d a n d t r a n s f e r r e d d u r i n g M a r c h 4 0 ,0 0 0 u n it s ? $ 7 .2 6 p e r e q u iv a le n t u n it 2 9 0 , 4 0 0$C o s t s r e m a i n i n g i n w o r k i n p r o c e s s o n M a r c h 3 1 D ir e c t M a t e r ia l: 1 0 ,0 0 0 e q u iv a le n t u n it s ? $ 2 .8 0 p e r e q u iv a le n t u n it 2 8 , 0 0 0$ C o n v e r s io n : 5 ,0 0 0 e q u iv a le n t u n it s ? $ 4 .4 6 p e r e q u iv a le n t u n it 2 2 , 3 0 0 T o t a l c o s t o f M a r c h 3 1 w o r k i n p r o c e s s 5 0 , 3 0 0 T o t a l c o s t s a c c o u n t e d f o r 3 4 0 , 7 0 0$All costs accounted for Production Report Example ? Analysis of total costs McGrawHill/Irwin 437 Operation Costing Operation costing employs some aspects of both joborder and process costing. Joborder Operation Costing Process Costing