8.6 Valuing opening in progress: FIFO & Weighted average cost method
  Accounting for the changes in the level of WIP
  The FIFO method
  This method distinguish between units completed in the period that from the opening work in progress and those new items started and completed in the period.
  Procedure:
  1. Equivalent units:
  Total equivalent units consist of
  ● The completion of opening WIP
  ● Units started and completed in the period
  ● The work done on closing WIP
  2. Costs to be accounted for
  Current cost added
  3. Costs per equivalent units
  4. Cost of finished gproduction
  ● Cost from opening WIP (value at the beginning of the period add conversion cost added in this period)
  ● Cost of the finished goods which started and completed in this period
  ● Value of closing WIP
  5. Complete the process account
  Example 9
  Opening inventory 500 units. Degree with completion: 60%
  Cost to date:     $2800
  Cost incurred: Direct materials ( 2500 units introduced) $13,200
  Direct labour     $6600
  Production overhead  $6600
  Closing inventory 300 units: degree with completion: 80%
  There was no loss in the process.
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