For each method, you go back to your equivalent units for the ending work in process, multiply the materials equivalent units by the cost per equivalent unit for materials and the conversion equivalent units by the cost per equivalent unit for conversion, and add the two results together.
At 13:02, why would we include prior period cost of Beg WIP in FIFO which only includes costs of current period? And what is this Assign costs step for, Eg: for which Journal entries? Thanks.
At 7:15, can I say we take 89k-15k to get started and completed during this period because the production follows FIFO process, what is in first will be completed first? Thanks for the helpful video btw. Thumbs up!!!
As an BSc student I recommend you also take a step back to see if the numbers make sense in regards to the theories and assumptions for using the method. Ask yourself - does it make sense that eq.unit material price is higher using WA then FIFO and why? Plus look at the conversion/transfer costs in both - here it then has to be opposite due to the theory. Always take a step back and comment on the results when being tested in an exam. Also for a better understanding off the two methods - remember that when using FIFO, it just means that you are pushing costs forward to the next period or periods and that this has an effect on the final result.
Great video, helped me understand the concepts, but I did notice some slight errors in calculation though. Maybe because of rounding from the spreadsheet?
3:16
Formula: Beginning + Added - Ending = Transferred Out
3:40
Formula:
Total = Materials+ Conversions
Super clear content well combine with process costing inventory concept. So appreciate it
At 1:09/14:34, What formula did you use to auto populate in FIFO when entering the wip beginning units?
If this is the basic version
Is there an advance version on your channel or website ?
Good explanation but the video for me seemed really buggy. A lot of faded cursors popping up all over the screen
How about the computation for the cost allocation in WIP, End?
For each method, you go back to your equivalent units for the ending work in process, multiply the materials equivalent units by the cost per equivalent unit for materials and the conversion equivalent units by the cost per equivalent unit for conversion, and add the two results together.
At 13:02, why would we include prior period cost of Beg WIP in FIFO which only includes costs of current period? And what is this Assign costs step for, Eg:
for which Journal entries? Thanks.
Google lumen learning.com fifo or weighted average process costing. It explains this concept better. Otherwise edspira or farhat on TH-cam
Great work! I really appreciate it.
At 7:15, can I say we take 89k-15k to get started and completed during this period because the production follows FIFO process, what is in first will be completed first? Thanks for the helpful video btw. Thumbs up!!!
Spreadsheet link no longer exist.
The link has been updated to the new website. Thank you for noting!
As an BSc student I recommend you also take a step back to see if the numbers make sense in regards to the theories and assumptions for using the method. Ask yourself - does it make sense that eq.unit material price is higher using WA then FIFO and why?
Plus look at the conversion/transfer costs in both - here it then has to be opposite due to the theory. Always take a step back and comment on the results when being tested in an exam.
Also for a better understanding off the two methods - remember that when using FIFO, it just means that you are pushing costs forward to the next period or periods and that this has an effect on the final result.
Great video, helped me understand the concepts, but I did notice some slight errors in calculation though. Maybe because of rounding from the spreadsheet?
The spreadsheet will be more accurate than hand calculations if your hand calculations use rounding.
Helped alot!
It was really nice
👍