PROCESS COSTING
Units Completion
Materials Conversion
WIP, beginning 10,000 100% 70% WIP, beginning
Started 40,000 Current period costs
Transferred Out 33,000
Spoilage/loss 2,000 - END
WIP, ending 15,000 100% 60%
WEIGHTED AVERAGE FIFO
Step 1: Equivalent Units
Total Materials Conversion Total
Transferred Out 33,000 33,000 33,000 WIP, beginning 10,000
Spoilage/loss 2,000 2,000 2,000 Started & Completed 23,000
WIP, ending 15,000 15,000 9,000 Spoilage/loss 2,000
EUP 50,000 50,000 44,000 WIP, ending 15,000
EUP 50,000
Step 2: Relevant Costs
Total Materials Conversion Total
WIP, beginning Current period costs
Current period costs
*FIFO only uses current period costs
Step 3: Cost per Equivalent Unit
Materials Conversion
Cost Cost
Equivalent Unit Equivalent Unit
÷
G
Total Materials Conversion
WIP, Beg 10,000
106,925 46,250 60,675 Started in Process 40,000
435,960 170,625 265,335 Treshold 50,000
FIFO
Materials Conversion
- 3,000
23,000 23,000
2,000 2,000
15,000 9,000
40,000 37,000
Materials Conversion
t period costs
Materials Conversion
÷
PROCESS COSTING
Units Completion
Materials Conversion
WIP, beginning 4,000 75% 60% WIP, beginning
Started 6,000 Current period costs
Transferred Out 5,000
Normal 1,200 25% 70%
Abnormal 800 25% 70% END
WIP, ending 3,000 25% 90%
WEIGHTED AVERAGE FIFO
Step 1: Equivalent Units
Total Materials Conversion
Transferred Out 5,000 5,000 5,000 WIP, beginning
Abnormal 800 200 560 Started & Completed
Normal 1,200 300 840 Normal
WIP, ending 3,000 750 2,700 Abnormal
EUP 10,000 6,250 9,100 WIP, ending
EUP
Step 2: Relevant Costs
Total Materials Conversion
WIP, beginning 500,000 100,000 400,000 Current period costs
Current period costs 4,500,000 2,000,000 2,500,000
2,100,000 2,900,000 *FIFO only uses current period costs
Step 3: Cost per Equivalent Unit
Materials Conversion
Cost 2,100,000 2,900,000 Cost
Equivalent Unit 6,250 9,100 Equivalent Unit
÷
336 318.6813187
STING
Total Materials Conversion
WIP, Beg 4,000
500,000 100,000 400,000 Started in Process 6,000
t period costs 4,500,000 2,000,000 2,500,000 Threshold 10,000
FIFO
Units
Total Materials Conversion
4,000 1,000 2,400
1,000 1,000 1,000
1,200 1,200 840
800 800 800
3,000 750 2,700
10,000 4,750 7,740
Costs
Total Materials Conversion
4,500,000 2,000,000 2,500,000
uses current period costs
alent Unit
Materials Conversion
2,000,000 2,500,000
4,750 7,740
÷
421.052631579 322.997416
PROCESS COSTING
Units Completion
Materials Conversion
WIP, beginning 20,000 20% 28% WIP, beginning
Started 80,000 Current period costs
Transferred Out 60,000
Normal 8,000 80% 75%
Abnormal 22,000 80% 75% END
WIP, ending 10,000 80% 80%
50000
WEIGHTED AVERAGE FIFO
Step 1: Equivalent Units
Total Materials Conversion
Transferred Out 60,000 60,000 60,000 WIP, beginning
Abnormal 22,000 22,000 22,000 Started & Completed
Normal 8,000 6,400 6,000 Normal
WIP, ending 10,000 8,000 8,000 Abnormal
EUP 100,000 96,400 96,000 WIP, ending
EUP
Step 2: Relevant Costs
Total Materials Conversion
WIP, beginning 1,000,000 400,000 600,000 Current period costs
Current period costs 2,500,000 1,000,000 1,500,000
1,400,000 2,100,000 *FIFO only uses current period costs
Step 3: Cost per Equivalent Unit
Materials Conversion
Cost 1,400,000 2,100,000 Cost
Equivalent Unit 96,400 96,000 Equivalent Unit
÷
14.52282158 21.875
STING
Total Materials Conversion
WIP, Beg 20,000
1,000,000 400,000 600,000 Started in Process 80,000
t period costs 2,500,000 1,000,000 1,500,000 Treshold 100,000
FIFO
Units
Total Materials Conversion
20,000 4,000 5,600
40,000 40,000 40,000
8,000 6,400 6,000
22,000 17,600 16,500
10,000 8,000 8,000
100,000 76,000 76,100
Costs
Total Materials Conversion
2,500,000 1,000,000 1,500,000
uses current period costs
alent Unit
Materials Conversion
1,000,000 1,500,000
76,000 76,100
÷
13.1578947368 19.7109067
Department 1
UNITS Dept. 1 Dept. 2
WIP, beg. 16,000 16,000 WIP, beg.
materials 60% 40% Started in Process
conversion 70% 20% Total units accounted for
Started in Process 152,000 ?
WIP, end 18,000 60,000 FIFO
materials 100% 0% Actual
conversion 60% 40% WIP, beg. 16,000
Started in Process 134,000
COSTS WIP, end 18,000
Incurred during August Total 168,000
Materials 79,200 44,820
Conversion Cost 74,800 50,720
Prior dept. cost - ?
WIP, beg
Beginning inventory cost Materials
Materials 4,800 2,880 Conversion Cost
Conversion Cost 21,680 1,280 Prior dept. cost
Prior dept. cost - 12,700 Total WIP,beg cost
Cost incurred
Materials
Conversion Cost
Total cost
Cost accounted for:
WIP, beg.
Started in Process
Transferred out to Dept.2
WIP, end
Total Cost
Cost Allocation
WIP beg.
Materials
Conversion cost
Started in Process
Materials
Conversion cost
WIP, end
Materials
Conversion cost
Department 2
16,000 WIP, beg.
152,000 Started in Process
168,000 Total units accounted for
FIFO
WD Material WD CC
40% 6,400 30% 4,800 WIP, beg.
100% 134,000 100% 134,000 Started in Process
100% 18,000 60% 10,800 WIP, end
158,400 149,600 Total
Total
WIP, beg
4,800 Materials
21,680 Conversion Cost
0 Prior dept. cost
26,480 Total WIP,beg cost
EUP Unit Cost Cost incurred
79,200 ÷ 158,400 0.50 Materials
74,800 ÷ 149,600 0.50 Conversion Cost
180,480 308,000 1.00 Prior dept. cost
Total cost
Cost from
Cost last preceding
Materials CC month dept. Total
3,200 2,400 26,480 - 32,080 Cost accounted for:
67,000 67,000 - - 134,000 WIP, beg.
70,200 69,400 26,480 - 166,080 Started in Process
9,000 5,400 - - 14,400 Transferred out to Dept.2
79,200 74,800 26,480 - 180,480 WIP, end
Total Cost
Cost Allocation
3,200 WIP beg.
2,400 Materials
Conversion cost
67,000 Started in Process
67,000 Materials
Conversion cost
Cost from preceding dept
9,000 WIP, end
5,400 Materials
Conversion cost
Cost from preceding dept
16,000
150,000
s accounted for 166,000
Actual WD Material WD CC
16,000 60% 9,600 80% 12,800
90,000 100% 90,000 100% 90,000
60,000 0% - 40% 24,000
166,000 99,600 126,800
Total
2,880
Conversion Cost 1,280
Prior dept. cost 12,700
16,860
EUP Unit Cost
44,820 ÷ 99,600 0.45
Conversion Cost 50,720 ÷ 126,800 0.40
Prior dept. cost 166,080 ÷ 150,000 1.11
278,480 226,400 1.96
Cost from
Cost last preceding
t accounted for: Materials CC month dept. Total
4,320 5,120 16,860 - 26,300
40,500 36,000 - 99,648 176,148
ed out to Dept.2 44,820 41,120 16,860 99,648 202,448
- 9,600 - 66,432 76,032
44,820 50,720 16,860 166,080 278,480
4,320
Conversion cost 5,120
40,500
Conversion cost 36,000
Cost from preceding dept. 99,648
-
Conversion cost 9,600
Cost from preceding dept. 66,432
Department 1
UNITS Dept. 1 Dept. 2
WIP, beg. 16,000 16,000 WEIGHTED AVERAGE
materials 60% 40% Actual
conversion 70% 20% Transferred Out 150,000
Started in Process 152,000 ? WIP, end 18,000
WIP, end 18,000 60,000 Total 168,000
materials 100% 0%
conversion 60% 40%
COSTS WIP, beg
Incurred during August Materials
Materials 79,200 44,820 Conversion Cost
Conversion Cost 74,800 50,720 Prior dept. cost
Prior dept. cost - ? Total WIP,beg cost
Cost incurred
Beginning inventory cost Materials
Materials 4,800 2,880 Conversion Cost
Conversion Cost 21,680 1,280 Total cost
Prior dept. cost - 12,700
Cost accounted for:
Finished and Transferred
Transferred out to Dept.2
Add: WIP, end
Total Cost
Cost Allocation
Finished and Transferred
Materials
Conversion cost
WIP, end
Materials
Conversion cost
Department 2
WEIGHTED AVERAGE WEIGHTED AVER
WD Material WD CC Actual
100% 150,000 100% 150,000 Transferred Out 106,000
100% 18,000 60% 10,800 WIP, end 60,000
168,000 160,800 Total 166,000
Total
WIP, beg
4,800 Materials
21,680 Conversion Cost
0 Prior dept. cost
26,480 Total WIP,beg cost
EUP Unit Cost Cost incurred
79,200 ÷ 168,000 0.50 Materials
74,800 ÷ 160,800 0.60 Conversion Cost
180,480 328,800 1.10 Prior dept. cost
Total cost
Cost from
Cost last preceding
Materials CC month dept. Total
75,000 90,000 - - 165,000 Cost accounted for:
75,000 90,000 - - 165,000 Finished and Transferred
9,000 6,480 - - 15,480 Transferred out to Dept.2
84,000 96,480 - - 180,480 WIP, end
Total Cost
Cost Allocation
75,000 Finished and Transferred
90,000 Materials
Conversion cost
Prior dept cost
9,000 WIP, end
6,480 Materials
Conversion cost
Prior dept cost
WEIGHTED AVERAGE
WD Material WD CC
100% 106,000 100% 106,000
0% - 40% 24,000
106,000 130,000
Total
2,880
1,280
12,700
16,860
EUP Unit Cost
44,820 ÷ 106,000 0.45
50,720 ÷ 130,000 0.40
165,000 ÷ 166,000 1.07
277,400 402,000 1.92
Cost from
preceding
Materials CC dept. Total
47,700 42,400 113,471 203,571
47,700 42,400 113,471 203,571
- 9,600 64,229 73,829
47,700 52,000 177,700 277,400
47,700
42,400
113,471
-
9,600
64,229
WA
TOTAL WD Materials WD CC
Transferred out 88,000 100% 88,000 100% 88,000
WIP,end 21,000 100% 21,000 80% 16,800
109,000 104,800
CC
WIP, beg 46,915
Current cost 825,183
872,098
8.32
