加里森管理会计教学课件英文Garrison16e-课件ch04A

FIFOMethodAPPENDIX4ATheFIFOMethodTheFIFOmethodisgenerallyconsideredmoreaccuratethantheweighted-averagemethod.FIFOcalculatesunitcostsusingonlythecostsandoutputsfromthecurrentperiod.Wewillorganizeourexplanationusingthesamefour-stepprocessthatweusedfortheweighted-averagemethod.LearningObjective6ComputetheequivalentunitsofproductionusingtheFIFOmethod.Step1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part1Let’srevisittheSmithCompanyexamplefromtheChapter4PowerPoint.HereisinformationconcerningtheAssemblyDepartmentforthemonthofJune.Step1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part2Step1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part3Step1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part4Beginning

WorkinProcess

300Units

40%CompleteEnding

WorkinProcess

900Units

60%Complete6,000UnitsStarted5,100UnitsStarted

andCompletedStep1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part5Materials5,100UnitsCompleted540EquivalentUnits900×60%5,820Equivalentunits

ofproduction180EquivalentUnits300×60%Beginning

WorkinProcess

300Units

20%CompleteEnding

WorkinProcess

900Units

30%Complete6,000UnitsStarted5,100UnitsStarted

andCompletedStep1:ComputetheEquivalentUnitsofProduction–FIFOMethod–Part6Conversion5,100UnitsCompleted270EquivalentUnits900×30%5,610Equivalentunits

ofproduction240EquivalentUnits300×80%ComparingEquivalentUnits:

Weighted-AverageandFIFOMethodsTheFIFOmethodremovestheequivalentunitsthatwerealreadyinbeginninginventoryfromtheequivalentunitsasdefinedusingtheweighted-averagemethod.Thus,theFIFOmethodisolatestheequivalentunitsduetoworkperformedduringthecurrentperiod.ThiscanbeillustratedusingtheSmithCompanyexampleasfollows:Theequivalentunitsofproductionformaterialsundertheweighted-averagemethod(5,940units)minustheequivalentunitsofmaterialalreadycompleteinbeginninginventory(120units)equalstheequivalentunitsofproductionundertheFIFOmethod(5,820).Theequivalentunitsofproductionforconversionundertheweighted-averagemethod(5,670units)minustheequivalentunitsofconversionalreadycompleteinbeginninginventory(60units)equalstheequivalentunitsofproductionundertheFIFOmethod(5,610units).LearningObjective7ComputethecostperequivalentunitusingtheFIFOmethod.Beginningworkinprocess:300units

Materials:40%complete $ 6,119 Conversion:20%complete $ 3,920

ProductionstartedduringJune 6,000unitsProductioncompletedduringJune 5,400unitsCostsaddedtoproductioninJune

Materialscost $118,621 Conversioncost $81,130

Endingworkinprocess 900units Materials: 60%complete Conversion: 30%completeStep2:ComputetheCostperEquivalentUnit(FIFOMethod)–Part1Let’srevisittheSmithCompanyAssemblyDepartmentforthemonthofJunetoprepareourcostperequivalentunit.Step2:ComputetheCostperEquivalentUnit(FIFOMethod)–Part2Ortheequivalentunitsofproductioncanalsobedeterminedasfollows:Step2:ComputetheCostperEquivalentUnit(FIFOMethod)–Part3Totalcostperequivalentunit=$20.3816+$14.4617=$34.8433$118,621÷5,820$81,130÷5,610LearningObjective8AssigncoststounitsusingtheFIFOmethod.Step3:AssignCoststoUnits(FIFOMethod)–Part1RecordtheequivalentunitsofproductioninendingWorkinProcessInventory.900units×60%900units×30%Step3:AssignCoststoUnits(FIFOMethod)–Part2Recordthecostperequivalentunit.Step3:AssignCoststoUnits(FIFOMethod)–Part3ComputethecostofendingWorkinProcessInventory.540×$20.3816270×14.4617ComputingtheCostofUnits

TransferredOut–Part1RecordthecostinbeginningWorkinProcessInventory.ComputingtheCostofUnits

TransferredOut–Part2Computethecosttocompletetheunitsinbeginning

WorkinProcessInventory.ComputingtheCostofUnits

TransferredOut–Part3Computethecostofunitsstartedandcompletedthisperiod.ComputingtheCostofUnits

TransferredOut–Part4Computethetotalcostofunitstransferredout.LearningObjective9PrepareacostreconciliationreportusingtheFIFOmethod.PrepareacostreconciliationreportusingtheFIFOmethod.Step4:PrepareaCostReconciliationReport(FIFOMethod)–Part1Step4:PrepareaCostReconciliationReport(FIFOMethod)–Part2*$1roundingerror.AComparisonofCostingMethodsInmostsituations,theweighted-averageandFIFOmethodswillproduceverysimilar