[Olinto4life]

Becker Question –

On page B1-51, I’m a little confused by the computation of equivalent units under the weighted-average method. They computed weighted-average equivalent units using 3 components (Units in Process Beg., Units started and completed, Units In Process End.). However on B1-49 they say that there are only 2 components used for computing weighted-average equivalent units (Units started and completed, and Units in Process End.). Any help or explanation would be much appreciated!!!

[Whopper Warrior]

This is the easiest way:

Units Completed

+ Ending work in process (units * percent complete)

=Weighted Average units

– Beginning Inventory (units * percent complete)

=FIFO units

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Never_Give_Up1]

They way I calculate it

Beginning balance * (1- % complete)

+Units transferred out

– Beginning balance

+ ending balance * % complete

THIS IS FIFO completed units

Weighted average

Ending balance * % complete

+ units transferred out

= Completed units

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
State License Exam - Done

License - Licensed CPA in Utah

[Whopper Warrior]

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Anonymous]

The easiest way I've found is a little memory trick:

WA = 2 Letters, 2 Components

Completed (100% of units)

+ End WIP (% complete)

= E.U.

FIFO = 4 Letters, 4 Components

Beg (1-% Complete)

+ Completed (100%)

– Beg (100% of units)

+ End (% complete)

= E.U.

That might help you keep WA straight on the exam!

[Anonymous]

@CP Apache,

Thanks for this. I found this very helpful 🙂

[Author]

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