CRM 200 Chapter Notes -Weighted Arithmetic Mean, Finished Good, Lake Wobegon

• School: Ryerson University
• Department: Criminology
• Course: CRM 200
• Professor: Tsogbadral Galaabaatar

Document Summary

Lo1 assign costs to mass-produced products using equivalent units to the production process. Lo2 apply and compare fifo and weighted average methods in process costing. Lo3 apply alternative methods in mass production for multiple departments. Lo4 describe how spoilage costs are handled in process costing. Lo5 explain how process costing information affects managers" incentives and decisions. These learning questions (lo1 through lo5) are cross-referenced in the textbook to individual exercises and problems. 6. 1 weighted average and fifo process costing produce similar equivalent unit costs whenever the unit cost of production does not change or whenever there are no beginning or ending work-in-process inventories. In addition, the equivalent unit costs will be similar if the number of equivalent units produced during the period is large relative to inventories. A process would complete more units during the period than it started when there are more units in beginning inventory than in ending inventory.