【正文】 EQUIVALENT UNITS continued Refinements on weightedaverage method – Formula can be refined to show the putations for materials and for conversion costs as follows: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 44 Equivalent units of production conversion costs Units pleted and transferred out – conversion costs Equivalent units of ending WIP conversion costs = 247。1 Chapter 21 Cost accounting systems PowerPoint presentation by Dr Anne Abraham University of Western Sydney 169。 Equivalent units of production materials Units pleted and transferred out – materials Equivalent units of ending WIP materials = 247。 (Units produced the job) during the period) PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 34 Process cost flow ? Flow of costs does not follow specific jobs or batches ? Costs are accumulated and then assigned to Work in Process ? Different WIP Inventory accounts are used for different departments or stages of production ? Costs of units pleted in one department are transferred to next department as goods move through manufacturing process PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 35 LO8 Flow of costs in process cost system PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 36 Assignment of manufacturing costs – journal entries 1. Materials costs – Materials are usually added to production at the beginning of first process, then at varying times for subsequent processes – To record materials used in production: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 37 Work in Process Machining XXX Work in Process – Assembly XXX Raw Materials Inventory XXX (To record materials used) LO9 Assignment of manufacturing costs – journal entries continued 2. Factory labour costs –Assigned to production according to stages of process –To assign factory labour to production: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 38 Work in Process Machining XXX Work in Process – Assembly XXX Factory Labour XXX (To assign factory labour to production) Assignment of manufacturing costs – journal entries continued 3. Manufacturing overhead costs –Cost drivers used to determine application rate should reflect activities involved –To apply overhead to production: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 39 Work in Process Machining XXX Work in Process – Assembly XXX Manufacturing Overhead XXX (To assign overhead to production) Assignment of manufacturing costs – journal entries continued 4. Transfer to next department –Costs are assigned as goods move through the production process –To record transfer of units from machining department to assembly department: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 40 Work in Process Assembly XXX Work in Process – Machining XXX (To record transfer of units to the Assembly department) Assignment of manufacturing costs – journal entries continued 5. Transfer to finished goods – To record transfer of units to finished goods: 6. Transfer to cost of sales – To record cost of units sold: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 41 Cost of Sales XXX Finished Goods Inventory XXX (To record cost of units sold) Finished Goods Inventory XXX Work in Process – Assembly XXX (To record transfer of units to finished goods) EQUIVALENT UNITS ? Equivalent units of production measure the work done during the period, expressed in terms of fully pleted units ? Equivalent units are used to determine the cost per unit of pleted product ? Calculation of equivalent units requires estimates of the degree of pletion PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 42 LO10 EQUIVALENT UNITS continued Weightedaverage method ? The weightedaverage method can be used to calculate the number of equivalent units PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 43 Equivalent units of production Units pleted and transferred out Equivalent units of ending WIP = 247。 2020 John Wiley amp。 Production cost report ? A production cost report summarises the production quantity and cost data for each department ? Four steps to plete the report: 1. Calculate physical unit flow 2. Calculate equivalent units of production 3. Calculate unit production costs 4. Prepare a cost reconciliation schedule PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 45 LO11 Preparing the production cost report ? Steps 1 and 2 PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 46 Eq