Cost Per Equivalent Unit-- FIFO Method vs. Weighted-average Method
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- Опубліковано 20 сер 2024
- This video explains the difference between the FIFO Method and the Weight-average Method for calculating cost per equivalent unit. A comprehensive example is presented to illustrate how the weighted-average method includes costs that were incurred in the prior period and thus results in a different cost per equivalent unit than the FIFO Method.
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This guy does such a great job explaining things unlike my professor who makes no sense when she talks in class. I learned more in this eight minute video that my professors full two hour class.
+Masood H Thank you for the kind words, and for making me laugh! Have a great winter break :)
+Masood H Truth.
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Indeed
Imagine, finding this free video that covered this better than my expensive CPA prep. Thank you.
You’re so amazing at explaining! My teacher makes everything so complicated and doesn’t know how to deliver the ideas! I honestly don’t get anything she says in the class, but I was the only one who got full mark and that was because of your videos. Even my teacher asked me how I got it so I told her about your videos and she seemed a bit offended lol! Can’t thank you enough! Much love & respect from Saudi Arabia.
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This video is unbelievable. Becker should take note! Spent 12 hrs breaking my head over FIFO vs. Weighted Avg. for the cost accounting section in BEC, only for this guy to clear things up 3 min in to watching his video. Lol Legend.
This was huge for my CPA prep. Thank you!
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Learnt alot
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This is one of the best professor's I heard for a long time. This helped me a lot for my cost final exam. Thankyou.
Great. I'm glad to hear this. Best of luck to you on your final exam!
The best explanation of equivalent unit. Thanks bro..
No problem my friend! Love and respect to you as well :)
this is the future of education
I love your teaching, it is so much easier to follow than the exam book examples for me. Thank you! Your work in showing and talking me through, is making all the difference for me.
That's great to hear. I'm glad you're doing well!
Thank you for the refresher on this topic! It was definitely easier to understand with this versus my BEC review.
Way better explanation than my textbook or online module! Thank you!!!!
Glad you liked it!
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I love hearing comments like this because they keep me motivated to put out more content. Thanks Maria!
Thank you so much! I was so confused with those two methods. Now everything is crystal clear. Thank you thank you thank you!
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Perfectly explained. Good stuff. Thanks author
Sir, I have a test tomorrow on equivalent units. You just saved me! I hope, I do well.
Great. Best of luck on your exam!
Thank you,Sir!
the guy in the wiley BEC study video said fuck it i aint teaching this shit just look at the notes lmfao. and im glad i ended up here. thanks. huge help
i have a quastion : the 8500 mats and 8000 conversion in weigt avarege method for bigining w-i-p from the quastion or did you calculate it
To the point explanation! Thank you so much for uploading such content.
Happy to help!
Thanks for the help!...also, your voice sounds identical to chef John from Food Wishes on youtube.
Thanks for the great explanation. In the video about the FIFO method you also explained how to apply costs to transferred goods and EWIP, but I unfortunately you didn’t do that here for the weighted average. Is there a video that’s already posted that explains how to apply the costs? Thanks!
Am also wondering the same thing
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This is so good I swear,I so much understand now,thank you
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Thank you!
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It was great. Thank you.
Glad you enjoyed it!
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Big help, thank you!
Thank you very much sir, you made it alot easier to understand.
AMAZING! Thank you so much
Thank you! This was SO helpful.
For an weighted-average problem in my book the answer says that Work In Progress (opening) has to be deducted from the total accounted for, but it doesn't show that in this video so I'm confused.
This was so helpful.
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😀
so helpful, appreciate the videos
Great job.Made it easy, somehow.
Omg thank you so much for this...so helpful
That was great! Thank you :)
Thank you so much for this video... However, i was wondering if there's an extra video as a follow up to this one to explain how to apply costs using the weighted average method?
I have a whole series on inventory. You can watch the sequence here: www.edspira.com/index-financial-accounting/
@@Edspira thank you so much... you're lessons are easy to understand and quite helpful for CPA study... Keep at it..
Is the value of closing WIP going to be the cost per equivalent unit multiplied by the closing number of units in each process at year end or multiplied by the percentage of completed units at year end (ie: the number we used in the EU calc)?
So when calculating the WIP at the end we use the percentage as it is, we don't subtract it from a 100 just like what we did at the beginning?
Thank you sir !!!!
No problem!
I'm very appreciate to your tutoring thanks 100% keep with more all the best in your future
Why the Beg.WIP costs are the same between FIFO and Weighted Average please? Thank you.
thank u :)
How about the Spoilage?
could you do an extension of FIFO AND WA COST PER EUP calculation with Discrete and Continuous Normal and abnormal loss?
what happen to the ending inventory cost for weighted average method...
Why you take the incomplete percent with the beginning WIP and at the ending WIP the complete percentage? Because FIFO wants to account only cost for this period or why?
+kalle jack @2:57 it gets explained . Great Video
Why do you use 35% to calculate DM EUs? Isn't DM always considered 100% complete since the cost of material has already been incurred?
*65%
well that's if you assume that all materials are added at the beginning of the period, usually that is to be assumed if the problem is silent. In this case however he stated that DM is only 35% complete so he uses 35%
He actually used 65% for the FIFO method because that is what you is TO BE (or 35% not TO BE (Already Completed))
WE DONT WANT WHATS HAPPENING LAST PERIOD TO AFFECT THIS PERIOD!
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I wonder how you get Beg. WIP of 8500 for mats. and 8000 for conversion.
+Abdulaziz Rajab Just a given for example
+Irrah Solis Thanks! I was looking for this...
Irrah Solis so the transferred out cost would included beg wip costs?
@@irrahsolis2512 thanks!
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