Page 73 - F2 Slides 2017-18
P. 73
WIP – Equivalent Units
Any incomplete units at the beginning or the end
of a period are valued using the concept of
Equivalent Units (EU).
Process
costs can
E.g. 100 be spread All material OWIP
physical evenly Conversion valued
units, half between is input is at costs input using
start of the
completed completed process over time AVCO or
= 50EUs and part- FIFO
completed
units.
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