Manufacturing Companies help track their units in work in process using a method called equivalent units. Equivalent Units are partially completed units translated into whole units. Accounting for whole units is much easier to track than if they were seen as partially completed units. To properly calculate equivalent units, companies must first figure the total units to account for. From there, calculate the number of units that were completed from the Beginning Work in Process batch, units started and completed and ending work in process. Under the FIFO method, manufacturers are only focusing on what was completed during the period. This allows them target current period expenses since beginning work in process are comprises the oldest units that will leave first once after completion.
Accounting tutoring on Chegg Tutors
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About Nathan G.,Accounting tutor on Chegg Tutors:
Texas State, Class of 2010
Subjects tutored: Accounting
Educated from Texas State University, I received my BBA Accounting in 2010. During college, I would often study with classmates. I noticed how much I enjoyed helping them with Accounting. I then knew I had a skill underutilized. My passion for tutoring fuels my desire to see you succeed. With over 7 years of instructional experience, I will provide the tools to help you master Accounting. Check out my YouTube Channel to learn more about Accounting: https://www.youtube.com/channel/UCCyBG-qtLqfvCdSG34ES8Ag.
I am a man of many tastes. I really enjoy technology, racquetball, basketball, real estate investing practices, web development, and comedy! I love diversifying my interests so I never get bored lol. Hope to hear from you soon! We'll setup a plan to help you succeed in Accounting.
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