cost accounting 301
Najwa 
Eldenburg_Wolcott_Wk06_ch06.ppt© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 1
Cost Management
Measuring, Monitoring, and Motivating Performance
Chapter 6
Process Costing
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 2
Chapter 6: Process Costing
Learning objectives
Q1: How are costs assigned to mass-produced products?
Q2: What are equivalent units & how do they relate to the production process?
Q3: How is the weighted average method used in process costing?
Q4: How is the FIFO method used in process costing?
Q5: What alternative methods are used for mass production?
Q7: How are spoilage costs handled in process costing?
Q8: How does process costing information affect managers’ incentives and decisions?
Q6: How is process costing performed for multiple production departments?
No animation
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 3
Q1: Job Order versus Process Costing
The t-accounts for job costing are animated.
One click is required for each of the two arrows in the job costing section.
The t-accounts for process costing are automated.
One click is required for each of the four arrows in the process costing section.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 4
Q1: Job Order versus Process Costing
The t-accounts for job costing are animated.
One click is required for each of the two arrows in the job costing section.
The t-accounts for process costing are automated.
One click is required for each of the four arrows in the process costing section.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 5
WIP Inventory - Units
BI
Units started
EI
Units completed
& transferred out
WIP Inventory - $
BI
DM
CC
EI
Units completed
& transferred out
Q1: Introduction to Process Costing
Process costing is a method of averaging costs over the units of production. This is necessary to determine the cost of the units transferred out of a department, as well as the cost of the department’s ending WIP inventory.
This information is all known
Unlike job costing, there are no job cost records to give us this information
This slide is automated, except for the red and blue text.
The first click brings in the red text and the second click brings in the blue text.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 6
Riker Co. had June costs for Department 1 as follows:
DM $60,000
CC 30,000
$90,000
There were no units in beginning or ending WIP inventory in June. During June Department 1 started 45,000 units, and all 45,000 were completed in June. What is the manufacturing cost/unit?
Q1: Process Costing with all Units Completed
WIP Inventory - Units
0
45,000
0
45,000
WIP Inventory - $
0
90,000
0
90,000
The manufacturing cost/unit is $90,000/45,000 units = $2/unit.
Everything on this slide is automated except the text box computing the manufacturing cost/unit.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 7
Suppose that 30,000 units were completed in June, and the units in ending WIP were 1/3 complete. What is the manufacturing cost/unit?
The 15,000 units taken to 1/3 completion are counted as 5,000 equivalent whole units, or 5,000 equivalent units of production (EUP).
Q2: The Concept of Equivalent Units
In order to value partially complete units of inventory, we measure units in equivalent whole units rather than actual units.
The manufacturing cost/unit =
$90,000/[30,000 + 5,000]EUP = $2.57143/EUP.
WIP Inventory - Units
0
45,000
15,000
30,000
WIP Inventory - $
0
90,000
The top text box, the given information in the blue outlined text box and the t-accounts are automated.
The first click brings in the text box about EUP
The second click brings in the computation of the cost/EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 8
Using the cost/EUP of $2.57143 from the prior slide, compute the costs attached to the 30,000 completed units and the costs attached to the 15,000 units in ending WIP inventory.
Q2: The Concept of Equivalent Units
30,000 units x $2.57143
77,143
12,857
5,000 EUP x $2.57143
WIP Inventory - Units
0
45,000
30,000
WIP Inventory - $
0
90,000
15,000
The top text box, the given information in the blue outlined text box and the t-accounts are automated.
The first click brings in the red text and arrows.
The second click brings in the blue text and arrows.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 9
The prior slide simplified the computation of EUP.
Q2-Q4: Equivalent Units & Process Costing Methods
15,000 units taken to 1/3 completion is equivalent to 5,000 whole units only if costs are incurred evenly.
We will return to this later.
The prior slide ignored the different methods of computing EUP.
The weighted average and FIFO methods compute EUP differently.
The first primary bullet and its 2 secondary bullets are automated.
The first click brings in the second primary bullet and its secondary bullet.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 10
Q2-Q4: Three Categories of Units
In process costing we categorize units according to the time period(s) they were produced.
Prior months
Current month
Next month
BI units: The units in beginning Work in process inventory were worked on in prior months and (we assume) they will be completed in the current month.
EI units: The units in ending Work in process inventory are started (we assume) in the current month and (we assume) they will be completed in the current month.
The top portion of the slide is automated.
The text about BI units, is also automated, but it disappears on the next mouse click.
The first click brings in the text about EI units.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 11
Q2-Q4: Three Categories of Units
In process costing we categorize units according to the time period(s) they were produced.
Prior months
Current month
Next month
S&C units: Any units that are started in the current month and are totally complete by month end are called started & completed units.
This slide is totally automated.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 12
Q2-Q4: Summarizing the Physical Flow of Production
The number of S&C units can be computed as the number of units transferred out less the number of BI units.
For example, suppose a department had 5,000 units in beginning WIP and started 50,000 units this month. If 35,000 units were completed, what is the number of S&C units?
WIP Inventory - Units
5,000
50,000
35,000
20,000
BI units 5,000
S&C units 30,000
Completed units 35,000
The top portion of this slide is automated.
The first click brings in the computation for S&C units.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 13
Q2-Q4: Two Process Costing Methods
The weighted average and FIFO methods of process costing methods compute EUP differently.
Prior months
Current month
Next month
The weighted average (WA) method gives credit for work performed in the current & prior months.
This means that under the WA method, the EUP for BI units and S&C units is the same as the physical number of units in each category.
This slide is automated except for the text box on the bottom right corner, which requires one click.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 14
Q2-Q4: Two Process Costing Methods
The weighted average and FIFO methods of process costing methods compute EUP differently.
Prior months
Current month
Next month
The weighted average (WA) method gives credit for work performed in the current & prior months.
The EUP for EI units and is based on the stage of completion of the EI units – only the portion of the work done in the current month is included.
This slide is not animated – no clicks are required.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 15
Q2-Q4: Two Process Costing Methods
The weighted average and FIFO methods of process costing methods compute EUP differently.
Prior months
Current month
Next month
The FIFO method gives credit only for work performed in the current month.
This means that the EUP for BI units is based on the completion of these units during the current month.
This slide is entirely automated.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 16
Q2-Q4: Two Process Costing Methods
The weighted average and FIFO methods of process costing methods compute EUP differently.
Prior months
Current month
Next month
The FIFO method gives credit only for work performed in the current month.
The EUP for EI units and is based on the stage of completion of the EI units – only the portion of the work done in the current month is included.
This slide is not animated – no clicks are required.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 17
Q2-Q4: Equivalent Units of Production Example
In July, Rita Corp. had 30,000 units in beginning WIP that were 60% complete and 20,000 units in ending WIP that were 80% complete. There were 100,000 units completed and transferred to FG inventory. Compute EUP for July using both the weighted average and FIFO methods.
WIP Inventory - Units
30,000
100,000
20,000
BI units 30,000
S&C units 70,000
Completed units 100,000
90,000
First, summarize the physical flow of the units and compute S&C.
The given info is automated.
The first click brings in the “First summarize…” text.
The second click brings in the t-account.
The third click brings in the computation of S&C units.
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© John Wiley & Sons, 2011
Slide # 18
Q2-Q4: Equivalent Units of Production Example
In July, Rita Corp. had 30,000 units in beginning WIP that were 60% complete and 20,000 units in ending WIP that were 80% complete. There were 100,000 units completed and transferred to FG inventory. Compute EUP for July using both the weighted average and FIFO methods.
BI units 30,000
S&C units 70,000
Completed units 100,000
WIP Inventory - Units
30,000
100,000
20,000
90,000
Then, convert the physical units to EUP.
Most of this slide is automated.
The first click brings in the numbers in the physical units row and blue arrows that disappear on the next click.
The 2nd click brings in the 18,000 EUP for BI – its yellow supporting computation disappears on the next click.
The 3rd click brings in the 12,000 EUP for BI – its yellow supporting computation disappears on the next click.
The 4th click brings in the 70,000 for S&C.
The 5th click brings in the 16,000 EUP for EI – its yellow supporting computation disappears on the next click.
The 6th click brings in the 116,000 for WA EUP.
The 7th click brings in the 98,000 for FIFO EUP.
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© John Wiley & Sons, 2011
Slide # 19
Q2-Q4: Equivalent Units of Production Example
In July, Rita Corp. had 30,000 units in beginning WIP that were 60% complete and 20,000 units in ending WIP that were 80% complete. There were 100,000 units completed and transferred to FG inventory. Compute EUP for July using both the weighted average and FIFO methods.
BI units 30,000
S&C units 70,000
Completed units 100,000
WIP Inventory - Units
30,000
100,000
20,000
90,000
Then, convert the physical units to EUP.
(1-60%)
Most of this slide is automated.
The first click brings in the numbers in the physical units row and blue arrows that disappear on the next click.
The 2nd click brings in the 18,000 EUP for BI – its yellow supporting computation disappears on the next click.
The 3rd click brings in the 12,000 EUP for BI – its yellow supporting computation disappears on the next click.
The 4th click brings in the 70,000 for S&C.
The 5th click brings in the 16,000 EUP for EI – its yellow supporting computation disappears on the next click.
The 6th click brings in the 116,000 for WA EUP.
The 7th click brings in the 98,000 for FIFO EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 20
The prior slides simplified the computation of EUP
Q2-Q4: Equivalent Units & Process Costing Methods
20,000 units started and taken to 80% completion is equivalent to 16,000 whole units only if costs are incurred evenly.
We usually assume that conversion costs are incurred evenly throughout production, but direct materials costs may not be incurred evenly.
Direct materials costs may be incurred at the beginning of processing or in some other uneven manner.
Because costs are incurred at different times, separate EUP computations are done for DM & CC.
This slide is entirely automated.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 21
Q2-Q4: Separate EUP for DM & CC
You are given the information below about the physical flow of the units in Department 1. The BI units were 25% complete and the EI units were 40% complete. Compute EUP for DM and CC if DM costs are incurred at the beginning of production.
WIP Inventory - Units
5,000
20,000
17,000
8,000
BI units 5,000
S&C units 12,000
Completed units 17,000
(1-25%)
Most of this slide is automated, including the physical unit row and the CC row.
The first click brings in 5,000 EUP for DM BI – its yellow supporting comment disappears on the next click.
The 2nd click brings in the 0 EUP for DM BI – its yellow supporting comment disappears on the next click.
The 3rd click brings in the 12,000 for DM S&C and the 8,000 EUP for DM EI – its yellow supporting comment disappears on the next click.
The 4th click brings in the 25,000 for DM WA EUP.
The 5th click brings in the 20,000 for DM FIFO EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 22
Q2-Q4: Separate EUP for DM & CC
Use the same information from the prior slide; recall that the BI units were 25% complete and the EI units were 40% complete. Compute EUP for DM and CC if 20% of DM costs are incurred at the beginning of processing and the rest of the DM costs are incurred when the units pass the 60% stage of completion.
(1-20%)
No Change
Most of this slide is automated, including the physical unit row and the CC row.
The first click brings in 5,000 EUP for DM BI – its yellow supporting comment disappears on the next click.
The 2nd click brings in the 0 EUP for DM BI – its yellow supporting comment disappears on the next click.
The 3rd click brings in the 12,000 for DM S&C and the 8,000 EUP for DM EI – its yellow supporting comment disappears on the next click.
The 4th click brings in the 25,000 for DM WA EUP.
The 5th click brings in the 20,000 for DM FIFO EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 23
The EUP calculations provide the denominator in the cost per EUP computation.
Q2-Q4: Cost per Equivalent Unit
The numerator for the WA cost per EUP includes total costs (current costs plus the BI costs).
The numerator for the FIFO cost per EUP includes only current costs.
A cost per EUP is computed for each cost category.
The WA and FIFO methods use different numerators in the cost per EUP computation.
This slide is entirely automated.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 24
You are given the information below about May’s production and costs for Slocik Co. The units in ending WIP were 1/3 complete. Direct materials are added at the beginning of processing. What is the manufacturing cost per EUP under both methods?
0
45,000
WIP Inventory - Units
30,000
15,000
0
DM 65,250
CC 28,000
WIP Inventory - $
Q3&4: Process Costing Example, no BI
First, compute the EUP for DM & CC.
This slide is entirely automated – no clicks are required.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 25
0
45,000
WIP Inventory - Units
30,000
15,000
0
DM 65,250
CC 28,000
WIP Inventory - $
Q3&4: Process Costing Example, no BI
When there is no BI, WA and FIFO have the same EUP, and hence the same costs/EUP.
The given info and the solution template are automated.
The first click brings in physical units row.
The second click brings in the DM EUP row.
The third click brings in the CC EUP row.
The fourth click brings in the comment about WA and FIFO having the same EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 26
0
45,000
WIP Inventory - Units
30,000
15,000
0
DM 65,250
CC 28,000
WIP Inventory - $
Q3&4: Process Costing Example, no BI
Now, compute the costs/EUP for DM & CC.
DM cost/EUP = $65,250/45,000 EUP = $1.45/EUP
CC/EUP = $28,000/35,000 EUP = 0.80/EUP
Total manufacturing cost/EUP $2.25/EUP
This slide is mostly automated.
One click brings in the cost/EUP calculations.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 27
0
45,000
WIP Inventory - Units
30,000
15,000
0
DM 65,250
CC 28,000
WIP Inventory - $
Q3&4: Process Costing Example, no BI
The last step is a process cost report that breaks the “total costs to account for” into:
total units to account for = 45,000
total costs to account for = $93,250
$ assigned to completed units
$ assigned to EI units
the portion that is assigned to the units in ending WIP inventory
the portion that is assigned to the completed units, and
This slide is mostly automated.
The first click brings in the green text about $ assigned to completed units.
The second click brings in the burgundy text about $ assigned to EI units.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 28
Q3&4: Process Costing Example, no BI
0
0
30,000 x $2.25
67,500
30,000
67,500
30,000
45,000
93,250
15,000
21,750
4,000
25,750
15,000 x $1.45
5,000 x $0.80
The journal entry to record the costs transferred out is:
FG inventory 67,500
WIP inventory 67,500
The first click brings in the BI row.
The second click brings in the S&C row and the total costs tr’d out row.
The third click brings in all 4 rows for the EI computations, and the total accounted for row.
The fourth click brings in the journal entry text box.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 29
Colors R Us, Inc. uses a process costing system for its sole processing department. There were 6,200 units in beginning WIP inventory for February and 57,500 units were started in February. The beginning WIP units were 60% complete and the 5,000 units in ending WIP were 45% complete. All materials are added at the start of processing. Compute the EUP for DM and CC using both methods.
58,700
Q3&4: Process Costing Example, with BI
First, compute the # of units started & completed:
6,200
WIP Inventory - Units
5,000
57,500
BI units 6,200
S&C units 52,500
Completed units 58,700
The the given information in the blue outlined text box is automated.
The first click brings in the “first compute…” text and the t-account.
The second click brings in 58,700 completed units.
The third click brings in the computation for S&C units.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 30
Q3&4: Process Costing Example, with BI
58,700
6,200
WIP Inventory - Units
5,000
57,500
BI units 6,200
S&C units 52,500
Completed units 58,700
Now, compute the EUP for DM & CC (recall that BI & EI were 60% & 45% complete, respectively, and all DM are added at the start of processing).
The top portion of the slide is automated.
The first click brings in the “now compute…” text and the EUP template.
The second click brings in the physical units row.
The third click brings in the DM EUP row.
The fourth click brings in the CC EUP row.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 31
Beginning WIP inventory was valued at $42,896 [DM costs of $12,850 plus CC of $30,046]. During February Colors incurred DM costs of $178,250, and CC of $274,704. Compute the cost of the goods transferred out the the costs assigned to ending WIP inventory for February, using both methods.
BI 42,896
DM 178,250
CC 274,704
WIP Inventory - $
Q3&4: Process Costing Example, with BI
Under FIFO, the numerator includes only current costs:
The EUP from the prior slide:
DM cost/EUP = $178,250/57,500 EUP = $3.10/EUP
CC/EUP = $274,704/57,230 EUP = 4.80/EUP
Total manufacturing cost/EUP $7.90/EUP
The slide is totally automated, except the computation for cost/EUP, which requires one click.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management,2e
Slide # 32
Beginning WIP inventory was valued at $42,896 [DM costs of $12,850 plus CC of $30,046]. During February Colors incurred DM costs of $178,250, and CC of $274,704. Compute the cost of the goods transferred out the the costs assigned to ending WIP inventory for February, using both methods.
BI 42,896
DM 178,250
CC 274,704
WIP Inventory - $
Q3&4: Process Costing Example, with BI
Under WA, the numerator includes BI and current costs:
The EUP from the prior slide:
DM cost/EUP = $191,100/63,700 EUP = $3.00/EUP
CC/EUP = $307,750/60,950 EUP = 5.00/EUP
Total manufacturing cost/EUP $8.00/EUP
The slide is totally automated, except the computation for cost/EUP.
The first click brings in the DM cost/EUP computation, and the red arrows (which disappear on the next click).
The second click brings in the CC/EUP computation, and the blue arrows (which disappear on the next click).
The third click brings in the total cost/EUP.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 33
6,200
57,500
WIP Inventory - Units
58,700
5,000
42,896
DM 178,250
CC 274,704
WIP Inventory - $
Q3&4: Process Costing Example, with BI
The last step is a process cost report that breaks the “total costs to account for” into:
total units to account for = 63,700
total costs to account for = $495,850
$ assigned to completed units
$ assigned to EI units
the portion that is assigned to the units in ending WIP inventory
the portion that is assigned to the completed units, and
This slide has no animation – no clicks are required.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 34
Q3&4: WA Process Costing Example, with BI
Under the WA method, there is no distinction between the 6,200 BI units and the 52,500 S&C units.
The first click brings in the costs tr’d out row, the top text box & the arrow.
The second click brings in all 4 rows for the EI computations, and the total accounted for row.
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Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 35
Q3&4: FIFO Process Costing Example, with BI
Under the FIFO method, the cost assigned to the 6,200 BI units is computed separately from the cost of the 52,500 S&C units.
= 2,480 * $4.80
= 52,500 * $7.90
= 5,000 * $3.10
= 2,250 * $4.80
The “under FIFO” text and the red arrow is automated.
The first click brings in the computations for BI.
The second click brings in the computations for S&C and total costs tr’d out.
The third click completed the FIFO calculations.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 36
Q6: Accounting for Transferred-in Costs
“Transferred-in costs” (TI) is merely another cost category like DM or CC
When preparing a process cost report for a department with TI costs:
All processing departments except the first will account for TI costs
Compute EUP for TI costs; all TI costs are incurred at the start of processing
Compute cost/EUP for TI costs
Assign TI costs to EI units
The first bullet is automated.
The first click brings in the second primary bullet.
The second click brings in the third primary bullet and its sub-bullets.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 37
Crusher Drugs manufactures a pain medication in a two-process cycle. In Department 2, direct materials are added as follows: 20% are added at the beginning of processing, and the rest at the 60% stage. There were 5,000 units in Dep’t 2’s beginning WIP inventory that were 40% complete, and 20,000 units were transferred in to Dep’t 2 in May. The Dep’t 2 ending WIP inventory of 6,000 units was 55% complete. Compute the May EUP for all cost categories for Department 2 using both methods.
Q6: Process Costing Example, with TI Costs
First, compute the # of units started & completed:
5,000
Dep’t 2 WIP Inventory - Units
6,000
20,000
BI units 5,000
S&C units 14,000
Completed units 19,000
19,000
The given info is automated, and the “First, compute…” text is on a 3 second delay.
The first mouse click brings in the t-account.
The second mouse click brings in the 19,000.
The 3rd click brings in the computation of S&C.
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 38
Q6: Process Costing Example, with TI Costs
19,000
5,000
Dep’t 2WIP Inventory - Units
6,000
20,000
BI units 5,000
S&C units 14,000
Completed units 19,000
Now, compute the EUP for DM & CC (recall that BI & EI were 40% & 55% complete, respectively; 20% of DM costs are incurred at the start of processing, and the rest are incurred at the 60% stage).
The top portion of the slide is automated.
The first click brings in the physical units row.
The 2nd click brings in the DM EUP row.
The 3rd click brings in the CC EUP row.
The 4th click brings in the TI EUP row.
No supporting computations are shown on this slide, but students will ask, especially about the DM row!
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© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 39
You are given the cost information below. Compute the cost per EUP under both methods.
Under WA, the numerator includes BI and current costs:
Q6: Process Costing Example, with TI Costs
DM cost/EUP = $79,537.50/20,200 EUP = $3.9375/EUP
CC/EUP = $35,122.50/22,300 EUP = 1.5750/EUP
Total manufacturing cost/EUP $10.7625/EUP
TI cost/EUP = $131,250/25,000 EUP = 5.2500/EUP
The slide is totally automated, except the computation for cost/EUP, which all comes in on the first click.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 40
You are given the cost information below. Compute the cost per EUP under both methods.
Under FIFO, the numerator includes only current costs:
Q6: Process Costing Example, with TI Costs
DM cost/EUP = $72,240/19,200 EUP = $3.7625/EUP
CC/EUP = $31,262/20,300 EUP = 1.5400/EUP
Total manufacturing cost/EUP $10.9025/EUP
TI cost/EUP = $112,000/20,000 EUP = 5.6000/EUP
Next, complete the process cost report using both methods….
The slide is totally automated, except the computation for cost/EUP, which all comes in on the first click.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 41
Q6: Process Costing Example, with TI Costs
Given $
4,000 *
3,000 *
14,000 *
* 19,000
1,200 * $3.7625 =
3,300 * $1.5400 =
6,000 * $5.6000 =
1,200 * $3.9375 =
3,300 * $1.5750 =
6,000 * $5.2500 =
The first click brings in the WA total costs tr’d out row.
The 2nd click brings in all 4 rows for the WA EI computations, and the WA total accounted for row.
The 3rd click brings in the FIFO BI cost row.
The 4th click brings in the FIFO cost to complete BI rows.
The 5th click brings in the FIFO S&C and the total costs tr’d out rows.
The 6th click completes the FIFO computations.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 42
Q5: What Alternative Methods are Used for Mass Production?
Adaptations to Traditional Process Costing
Match equivalent units calculations more closely to actual production processes
Separate conversion costs into multiple pools
Standard costs simplify the accounting
Just-in-time production
Hybrid costing, or operation costing
This slide has no animation – no clicks required.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 43
Q7: Accounting for Spoilage in Process Costing
Costs of normal spoilage are absorbed by the good units transferred out.
Costs of abnormal spoilage are charged to a Loss from abnormal spoilage account.
Costs attach to spoilage depending on when spoilage is detected.
This slide has no animation – no clicks required.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 44
Hollidaze makes molded plastic party decorations. In June, there were 800 units in beginning WIP inventory that were 40% complete and the 500 units in ending WIP were 30% complete. The company completed 3,000 units in June, but 200 of these were defective and were discarded. The defective units are located upon inspection before transfer to finished goods. It was determined that 50 of these defective units should be considered normal spoilage. The remaining spoilage occurred because of a rare machine malfunction and should be considered abnormal spoilage. All direct materials are added at the beginning of processing.
Compute the June EUP for DM and CC using both methods.
Q7: Process Costing & Spoilage Example
First, compute the # of units started & completed:
2,700
BI units 800
S&C units 2,200
Completed units 3,000
800
WIP Inventory - Units
500
3,000
this includes 200 defective units
The given info is automated, and the “First, compute…” text is on a 3 second delay.
The first mouse click brings in the rest of the elements on the slide.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 45
Q7: Process Costing & Spoilage Example
Now, compute the EUP for DM & CC (recall that BI & EI were 40% & 30% complete, respectively; DM costs are incurred at the start of processing).
BI units 800
S&C units 2,200
Completed units 3,000
2,700
800
WIP Inventory - Units
500
3,000
The top portion of the slide is automated.
The first click brings in the blue text.
The 2nd click brings in the physical units row.
The 3rd click brings in the DM EUP row.
The 4th click brings in the CC EUP row & the red text & arrow.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 46
You are given the cost information below. Compute the cost per EUP under both methods.
Under WA, the numerator includes BI and current costs:
Q7: Process Costing & Spoilage Example
DM cost/EUP = $11,375/3,500 EUP = $3.25/EUP
CC/EUP = $7,245/3,150 EUP = 2.30/EUP
Total manufacturing cost/EUP $5.55/EUP
The slide is totally automated, except the computation for cost/EUP, which all comes in on the first click.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 47
You are given the cost information below. Compute the cost per EUP under both methods.
Q7: Process Costing & Spoilage Example
DM cost/EUP = $8,640/2,700 EUP = $3.20/EUP
CC/EUP = $5,943/2,830 EUP = 2.10/EUP
Total manufacturing cost/EUP $5.30/EUP
Under FIFO, the numerator includes only current costs:
Next, complete the process cost report using both methods….
The slide is totally automated, except the computation for cost/EUP, which all comes in on the first click.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Q7: WA Process Costing & Spoilage Example
The WA journal entry to record the costs transferred out is:
FG inventory 15,81.50
Loss from abnormal spoilage 832.50
WIP inventory 16,650.00
Note the total good units accounted for is the total units to account for less the spoiled units.
The first click brings in the WA normal spoilage row.
The 2nd click brings in the WA good units S&C row and the blue subtotal. all 4 rows for the WA EI computations, and the WA total accounted for row.
The 3rd click brings in the WA abnormal spoilage row.
The 4th click brings in all 4 rows for the WA EI computations, the WA total accounted for row, and the blue outlined text box about good units accounted for (which disappears on the next mouse click).
The 5th click brings in the journal entry.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 49
Q7: FIFO Process Costing & Spoilage Example
The FIFO journal entry to record the costs transferred out is:
FG inventory 15,910
Loss from abnormal
spoilage 795
WIP inventory 16,705
The first click brings in all of the FIFO BI rows.
The 2nd click brings in the FIFO normal spoilage rows.
The 3rd click brings in the FIFO good S&C row and the blue subtotal for total costs tr’d out.
The 4th click brings in the FIFO abnormal spoilage row.
The 5th click completes the FIFO computations.
The 6th click displays the journal entry under FIFO.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management 2e
Slide # 50
Q8: Process Costing Uses for Decision Making
Used to determine valuation for inventory and cost of goods sold at the end of each period
Required for financial statements and income tax returns
Helps managers evaluate if the production processes are operating as expected
Compare actual results to budget, standards, or prior periods
Identify areas for process improvements
Analyze benefits of quality improvements
This slide is not animated – no clicks are required.
‹#›
© John Wiley & Sons, 2011
Chapter 6: Process Costing
Eldenburg & Wolcott’s Cost Management, 2e
Slide # 51
Q8: Process Costing Limitations & Impacts on Managers’ Decision Making
Process cost information is generally not useful for many short-term decisions because unavoidable fixed costs are allocated to the products.
Need to determine incremental or marginal costs
Separating conversion costs into fixed and variable pools would help
Requires use of estimates:
The point of the production process when DM costs or CC are incurred.
Stage of completion for all units in beginning and ending WIP inventories
This slide is not animated – no clicks are required.
‹#›
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (WA)Units (FIFO)
Beginning WIP30,000 18,000 60%
This Period's Work
Complete Beg WIP30,000 12,000 40%12,000 40%
Start & Complete70,000 70,000 100%70,000 100%
Ending WIP20,000 16,000 80%16,000 80%
Total Work120,000 116,000 98,000
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)
Beginning WIP5,000 5,000 100%1,250 25%
This Period's Work
Complete Beg WIP5,000 - 0%3,750 75%
Start & Complete12,000 12,000 100%12,000 100%
Ending WIP8,000 8,000 100%3,200 40%
FIFO Equivalent Units20,000 18,950
WA Equivalent Units (with Beg WIP)25,000 20,200
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 |
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)
Beginning WIP5,000 1,000 20%1,250 25%
This Period's Work
Complete Beg WIP5,000 4,000 80%3,750 75%
Start & Complete12,000 12,000 100%12,000 100%
Ending WIP8,000 1,600 20%3,200 40%
FIFO Equivalent Units17,600 18,950
WA Equivalent Units (with Beg WIP)18,600 20,200
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide19 20
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 1,000 | 20% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 1,600 | 20% | 3,200 | 40% | ||
| FIFO Equivalent Units | 17,600 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 18,600 | 20,200 |
WA
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,042 | 33,600 | 36,642 | ||||
| Conversion Costs | 2,838 | 74,925 | 77,763 | ||||
| Total | $ 5,880 | $ 108,525 | $ 114,405 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Units Completed | 10,000 | 10,000 | 100% | 10,000 | 100% | ||
| Ending WIP | 3,000 | 3,000 | 100% | 1,500 | 50% | ||
| Total Units | 13,000 | 13,000 | 11,500 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 2.8186 | ($36,642 / 13,000) | |||||
| Conversion Costs | $ 6.7620 | ($77,763 / 11,500) | |||||
| Total Cost per Equivalent Unit | $ 9.5806 | ||||||
| Cost Assignment | Units | Cost | |||||
| Units Completed | 10,000 | $ 95,806 | |||||
| Ending WIP | 3,000 | ||||||
| Direct Materials | 8,456 | ||||||
| Conversion Costs | 10,143 | ||||||
| Total Ending WIP Cost | - 0 | 18,599 | |||||
| Total Units and Cost Accounted For | 13,000 | $ 114,405 |
FIFO
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 1,000 | 1,000 | 100% | 400 | 40% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 1,000 | - 0 | 0% | 600 | 60% | ||
| Start & Complete | 9,000 | 9,000 | 100% | 9,000 | 100% | ||
| Ending WIP | 3,000 | 3,000 | 100% | 1,500 | 50% | ||
| Total Work | 13,000 | 12,000 | 11,100 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 2.80 | ($33,600 / 12,000) | |||||
| Conversion Costs | $ 6.75 | ($74,925 / 11,100) | |||||
| Total Cost per Equivalent Unit | $ 9.55 | ||||||
| Cost Assignment | Units | Cost | |||||
| Beginning WIP | 1,000 | $ 5,890 | |||||
| Direct Materials | - 0 | ||||||
| Conversion Costs | 4,050 | ||||||
| Units Completed | 9,940 | ||||||
| Units Started & Completed | 9,000 | 85,950 | |||||
| Total Transferred Out | 10,000 | 95,890 | |||||
| Ending WIP | 3,000 | ||||||
| Direct Materials | 8,400 | ||||||
| Conversion Costs | 10,125 | ||||||
| Total Ending WIP Cost | - 0 | 18,525 | |||||
| Total Units and Cost Accounted For | 13,000 | $ 114,415 |
Sheet3
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)
Beginning WIP- - -
This Period's Work
Complete Beg WIP- - -
Start & Complete30,000 30,000 100%30,000 100%
Ending WIP15,000 15,000 100%5,000 33%
FIFO Equivalent Units45,000 35,000
WA Equivalent Units (with Beg WIP)45,000 35,000
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide19 20
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 1,000 | 20% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 1,600 | 20% | 3,200 | 40% | ||
| FIFO Equivalent Units | 17,600 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 18,600 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | - 0 | - 0 | - 0 | ||||
| This Period's Work | |||||||
| Complete Beg WIP | - 0 | - 0 | - 0 | ||||
| Start & Complete | 30,000 | 30,000 | 100% | 30,000 | 100% | ||
| Ending WIP | 15,000 | 15,000 | 100% | 5,000 | 33% | ||
| FIFO Equivalent Units | 45,000 | 35,000 | |||||
| WA Equivalent Units (with Beg WIP) | 45,000 | 35,000 |
WA
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,042 | 33,600 | 36,642 | ||||
| Conversion Costs | 2,838 | 74,925 | 77,763 | ||||
| Total | $ 5,880 | $ 108,525 | $ 114,405 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Units Completed | 10,000 | 10,000 | 100% | 10,000 | 100% | ||
| Ending WIP | 3,000 | 3,000 | 100% | 1,500 | 50% | ||
| Total Units | 13,000 | 13,000 | 11,500 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 2.8186 | ($36,642 / 13,000) | |||||
| Conversion Costs | $ 6.7620 | ($77,763 / 11,500) | |||||
| Total Cost per Equivalent Unit | $ 9.5806 | ||||||
| Cost Assignment | Units | Cost | |||||
| Units Completed | 10,000 | $ 95,806 | |||||
| Ending WIP | 3,000 | ||||||
| Direct Materials | 8,456 | ||||||
| Conversion Costs | 10,143 | ||||||
| Total Ending WIP Cost | - 0 | 18,599 | |||||
| Total Units and Cost Accounted For | 13,000 | $ 114,405 |
FIFO
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 1,000 | 1,000 | 100% | 400 | 40% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 1,000 | - 0 | 0% | 600 | 60% | ||
| Start & Complete | 9,000 | 9,000 | 100% | 9,000 | 100% | ||
| Ending WIP | 3,000 | 3,000 | 100% | 1,500 | 50% | ||
| Total Work | 13,000 | 12,000 | 11,100 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 2.80 | ($33,600 / 12,000) | |||||
| Conversion Costs | $ 6.75 | ($74,925 / 11,100) | |||||
| Total Cost per Equivalent Unit | $ 9.55 | ||||||
| Cost Assignment | Units | Cost | |||||
| Beginning WIP | 1,000 | $ 5,890 | |||||
| Direct Materials | - 0 | ||||||
| Conversion Costs | 4,050 | ||||||
| Units Completed | 9,940 | ||||||
| Units Started & Completed | 9,000 | 85,950 | |||||
| Total Transferred Out | 10,000 | 95,890 | |||||
| Ending WIP | 3,000 | ||||||
| Direct Materials | 8,400 | ||||||
| Conversion Costs | 10,125 | ||||||
| Total Ending WIP Cost | - 0 | 18,525 | |||||
| Total Units and Cost Accounted For | 13,000 | $ 114,415 |
Sheet3
ComputationUnitsCosts
BI
Cost to complete BI
DM
CC
Total costs added
Total cost of BI
S&C
Total costs tr'd out
EI:
DM
CC
Total EI costs
Total acctd for
FIFO & WA are the same when BI = 0
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC |
Acct for costs
| FIFO & WA are the same when BI = 0 | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to complete BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Sheet2
Sheet3
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)
Beginning WIP6,200 6,200 100%3,720 60%
This Period's Work
Complete Beg WIP6,200 - 0%2,480 40%
Start & Complete52,500 52,500 100%52,500 100%
Ending WIP5,000 5,000 100%2,250 45%
FIFO Equivalent Units63,700 57,500 57,230
WA Equivalent Units (with Beg WIP)63,700 60,950
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide19 20
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 1,000 | 20% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 1,600 | 20% | 3,200 | 40% | ||
| FIFO Equivalent Units | 17,600 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 18,600 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| FIFO Equivalent Units | 63,700 | 57,500 | 57,230 | ||||
| WA Equivalent Units (with Beg WIP) | 63,700 | 60,950 |
WA
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,042 | 33,600 | 36,642 | ||||
| Conversion Costs | 2,838 | 74,925 | 77,763 | ||||
| Total | $ 5,880 | $ 108,525 | $ 114,405 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Units Completed | 10,000 | 10,000 | 100% | 10,000 | 100% | ||
| Ending WIP | 3,000 | 3,000 | 100% | 1,500 | 50% | ||
| Total Units | 13,000 | 13,000 | 11,500 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 2.8186 | ($36,642 / 13,000) | |||||
| Conversion Costs | $ 6.7620 | ($77,763 / 11,500) | |||||
| Total Cost per Equivalent Unit | $ 9.5806 | ||||||
| Cost Assignment | Units | Cost | |||||
| Units Completed | 10,000 | $ 95,806 | |||||
| Ending WIP | 3,000 | ||||||
| Direct Materials | 8,456 | ||||||
| Conversion Costs | 10,143 | ||||||
| Total Ending WIP Cost | - 0 | 18,599 | |||||
| Total Units and Cost Accounted For | 13,000 | $ 114,405 |
FIFO
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| Total Work | 63,700 | 57,500 | 57,230 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 0.58 | ($33,600 / 12,000) | |||||
| Conversion Costs | $ 1.31 | ($74,925 / 11,100) | |||||
| Total Cost per Equivalent Unit | $ 1.89 | ||||||
| Cost Assignment | Units | Cost | |||||
| Beginning WIP | 6,200 | $ 5,890 | |||||
| Direct Materials | - 0 | ||||||
| Conversion Costs | 3,247 | ||||||
| Units Completed | 9,137 | ||||||
| Units Started & Completed | 52,500 | 99,411 | |||||
| Total Transferred Out | 58,700 | 108,548 | |||||
| Ending WIP | 5,000 | ||||||
| Direct Materials | 2,922 | ||||||
| Conversion Costs | 2,946 | ||||||
| Total Ending WIP Cost | - 0 | 5,867 | |||||
| Total Units and Cost Accounted For | 63,700 | $ 114,415 |
Sheet3
Equiv units
WA
EUP
FIFO
EUP
DM63,70057,500
CC60,95057,230
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Sheet3
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Sheet3
Cost AssignmentUnitsCost
Units Completed58,700 469,600$
Ending WIP5,000
Direct Materials15,000
Conversion Costs11,250
Total Ending WIP Cost- 26,250
Total Units and Cost Accounted For63,700 495,850$
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide19 20
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 1,000 | 20% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 1,600 | 20% | 3,200 | 40% | ||
| FIFO Equivalent Units | 17,600 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 18,600 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| FIFO Equivalent Units | 63,700 | 57,500 | 57,230 | ||||
| WA Equivalent Units (with Beg WIP) | 63,700 | 60,950 |
WA
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 12,850 | 178,250 | 191,100 | ||||
| Conversion Costs | 30,046 | 274,704 | 304,750 | ||||
| Total | $ 42,896 | $ 452,954 | $ 495,850 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Units Completed | 58,700 | 58,700 | 100% | 58,700 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| Total Units | 63,700 | 63,700 | 60,950 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 3.0000 | ||||||
| Conversion Costs | $ 5.0000 | ||||||
| Total Cost per Equivalent Unit | $ 8.0000 | ||||||
| Cost Assignment | Units | Cost | |||||
| Units Completed | 58,700 | $ 469,600 | |||||
| Ending WIP | 5,000 | ||||||
| Direct Materials | 15,000 | ||||||
| Conversion Costs | 11,250 | ||||||
| Total Ending WIP Cost | - 0 | 26,250 | |||||
| Total Units and Cost Accounted For | 63,700 | $ 495,850 |
FIFO
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 12,850 | 178,250 | 191,100 | ||||
| Conversion Costs | 30,046 | 274,704 | 304,750 | ||||
| Total | $ 42,896 | $ 452,954 | $ 495,850 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| Total Work | 63,700 | 57,500 | 57,230 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 3.10 | ||||||
| Conversion Costs | $ 4.80 | ||||||
| Total Cost per Equivalent Unit | $ 7.90 | ||||||
| Cost Assignment | Units | Cost | |||||
| Beginning WIP | 6,200 | $ 42,896 | |||||
| Direct Materials | - 0 | ||||||
| Conversion Costs | 11,904 | ||||||
| Units Completed | 54,800 | ||||||
| Units Started & Completed | 52,500 | 414,750 | |||||
| Total Transferred Out | 58,700 | 469,550 | |||||
| Ending WIP | 5,000 | ||||||
| Direct Materials | 15,500 | ||||||
| Conversion Costs | 10,800 | ||||||
| Total Ending WIP Cost | - 0 | 26,300 | |||||
| Total Units and Cost Accounted For | 63,700 | $ 495,850 |
Sheet3
Cost AssignmentUnitsCost
Beginning WIP6,200 42,896$
Direct Materials-
Conversion Costs11,904
Units Completed54,800
Units Started & Completed52,500 414,750
Total Transferred Out58,700 469,550
Ending WIP5,000
Direct Materials15,500
Conversion Costs10,800
Total Ending WIP Cost- 26,300
Total Units and Cost Accounted For63,700 495,850$
slide 17
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 3,050 | 33,600 | 36,650 | ||||
| Conversion Costs | 2,840 | 74,925 | 77,765 | ||||
| Total | $ 5,890 | $ 108,525 | $ 114,415 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (WA) | Units (FIFO) | ||||
| Beginning WIP | 30,000 | 18,000 | 60% | ||||
| This Period's Work | |||||||
| Complete Beg WIP | 30,000 | 12,000 | 40% | 12,000 | 40% | ||
| Start & Complete | 70,000 | 70,000 | 100% | 70,000 | 100% | ||
| Ending WIP | 20,000 | 16,000 | 80% | 16,000 | 80% | ||
| Total Work | 120,000 | 116,000 | 98,000 |
slide19 20
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 5,000 | 100% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | - 0 | 0% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 8,000 | 100% | 3,200 | 40% | ||
| FIFO Equivalent Units | 20,000 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 25,000 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 5,000 | 1,000 | 20% | 1,250 | 25% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,750 | 75% | ||
| Start & Complete | 12,000 | 12,000 | 100% | 12,000 | 100% | ||
| Ending WIP | 8,000 | 1,600 | 20% | 3,200 | 40% | ||
| FIFO Equivalent Units | 17,600 | 18,950 | |||||
| WA Equivalent Units (with Beg WIP) | 18,600 | 20,200 | |||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| FIFO Equivalent Units | 63,700 | 57,500 | 57,230 | ||||
| WA Equivalent Units (with Beg WIP) | 63,700 | 60,950 |
WA
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 12,850 | 178,250 | 191,100 | ||||
| Conversion Costs | 30,046 | 274,704 | 304,750 | ||||
| Total | $ 42,896 | $ 452,954 | $ 495,850 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Units Completed | 58,700 | 58,700 | 100% | 58,700 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| Total Units | 63,700 | 63,700 | 60,950 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 3.0000 | ||||||
| Conversion Costs | $ 5.0000 | ||||||
| Total Cost per Equivalent Unit | $ 8.0000 | ||||||
| Cost Assignment | Units | Cost | |||||
| Units Completed | 58,700 | $ 469,600 | |||||
| Ending WIP | 5,000 | ||||||
| Direct Materials | 15,000 | ||||||
| Conversion Costs | 11,250 | ||||||
| Total Ending WIP Cost | - 0 | 26,250 | |||||
| Total Units and Cost Accounted For | 63,700 | $ 495,850 |
FIFO
| Beginning | Current | Total | |||||
| Cost Summary | WIP | Cost | Cost | ||||
| Direct Materials | 12,850 | 178,250 | 191,100 | ||||
| Conversion Costs | 30,046 | 274,704 | 304,750 | ||||
| Total | $ 42,896 | $ 452,954 | $ 495,850 | ||||
| Physical | Equivalent | Equivalent | |||||
| Units Summary | Units | Units (DM) | Units (CC) | ||||
| Beginning WIP | 6,200 | 6,200 | 100% | 3,720 | 60% | ||
| This Period's Work | |||||||
| Complete Beg WIP | 6,200 | - 0 | 0% | 2,480 | 40% | ||
| Start & Complete | 52,500 | 52,500 | 100% | 52,500 | 100% | ||
| Ending WIP | 5,000 | 5,000 | 100% | 2,250 | 45% | ||
| Total Work | 63,700 | 57,500 | 57,230 | ||||
| Equivalent Unit Cost | |||||||
| Direct Materials | $ 3.10 | ||||||
| Conversion Costs | $ 4.80 | ||||||
| Total Cost per Equivalent Unit | $ 7.90 | ||||||
| Cost Assignment | Units | Cost | |||||
| Beginning WIP | 6,200 | $ 42,896 | |||||
| Direct Materials | - 0 | ||||||
| Conversion Costs | 11,904 | ||||||
| Units Completed | 54,800 | ||||||
| Units Started & Completed | 52,500 | 414,750 | |||||
| Total Transferred Out | 58,700 | 469,550 | |||||
| Ending WIP | 5,000 | ||||||
| Direct Materials | 15,500 | ||||||
| Conversion Costs | 10,800 | ||||||
| Total Ending WIP Cost | - 0 | 26,300 | |||||
| Total Units and Cost Accounted For | 63,700 | $ 495,850 |
Sheet3
PhysicalEquivalent Equivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)Units (TI)
Beginning WIP5,000 1,000 20%2,000 40%5,000 100%
This Period's Work
Complete Beg WIP5,000 4,000 80%3,000 60%- 0%
Start & Complete14,000 14,000 100%14,000 100%14,000 100%
Ending WIP6,000 1,200 20%3,300 55%6,000 100%
FIFO Equivalent Units25,000 19,200 20,300 20,000
WA Equivalent Units (with Beg WIP)20,200 22,300 25,000
Sheet1
| Beginning | Current | Total | |||||||
| Cost Summary | WIP | Cost | Cost | ||||||
| Direct Materials | 7,298 | 72,240 | 79,538 | ||||||
| Conversion Costs | 3,861 | 31,262 | 35,123 | ||||||
| Transfer In Costs | 19,250 | 112,000 | 131,250 | ||||||
| Total | $ 30,408 | $ 215,502 | $ 245,910 | ||||||
| Physical | Equivalent | Equivalent | Equivalent | ||||||
| Units Summary | Units | Units (DM) | Units (CC) | Units (TI) | |||||
| Beginning WIP | 5,000 | 1,000 | 20% | 2,000 | 40% | 5,000 | 100% | ||
| This Period's Work | |||||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,000 | 60% | - 0 | 0% | ||
| Start & Complete | 14,000 | 14,000 | 100% | 14,000 | 100% | 14,000 | 100% | ||
| Ending WIP | 6,000 | 1,200 | 20% | 3,300 | 55% | 6,000 | 100% | ||
| FIFO Equivalent Units | 25,000 | 19,200 | 20,300 | 20,000 | |||||
| WA Equivalent Units (with Beg WIP) | 20,200 | 22,300 | 25,000 | ||||||
Sheet2
Sheet3
DMCCTITotal
Work in process, May 1$7,297.50 $3,860.50 $19,250.00 $30,408.00
Costs added in May72,240.0031,262.00112,000.00215,502.00
Total$79,537.50 $35,122.50 $131,250.00 $245,910.00
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
Acct for costs no TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs w TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Sheet3
| DM | CC | TI | Total | |
| Work in process, May 1 | $7,297.50 | $3,860.50 | $19,250.00 | $30,408.00 |
| Costs added in May | 72,240.00 | 31,262.00 | 112,000.00 | 215,502.00 |
| Total | $79,537.50 | $35,122.50 | $131,250.00 | $245,910.00 |
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
Acct for costs no TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs w TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Sheet3
| DM | CC | TI | Total | |
| Work in process, May 1 | $7,297.50 | $3,860.50 | $19,250.00 | $30,408.00 |
| Costs added in May | 72,240.00 | 31,262.00 | 112,000.00 | 215,502.00 |
| Total | $79,537.50 | $35,122.50 | $131,250.00 | $245,910.00 |
Equivalent Unit CostFIFOWA
Direct Materials3.7625$ 3.9375$
Conversion Costs1.5400 1.5750
Transfer In Costs5.6000 5.2500
Total Cost per Equivalent Unit10.9025$ 10.7625$
Cost AssignmentUnitsFIFO CostUnitsWA Cost
Beginning WIP5,000 30,408$
Cost to Complete BI
Direct Materials15,050
Conversion Costs4,620
Total Cost BI50,078
Units Started & Completed14,000 152,635
Total Transferred Out19,000 202,713$ 19,000 204,488$
Ending WIP6,000 6,000
Direct Materials4,515 4,725
Conversion Costs5,082 5,198
Transfer In Costs33,600 31,500
Total Ending WIP Cost- 43,197$ 41,423$
Total Units and Cost Accounted For25,000 245,910$ 25,000 245,910$
Sheet1
| Beginning | Current | Total | |||||||
| Cost Summary | WIP | Cost | Cost | ||||||
| Direct Materials | 7,298 | 72,240 | 79,538 | ||||||
| Conversion Costs | 3,861 | 31,262 | 35,123 | ||||||
| Transfer In Costs | 19,250 | 112,000 | 131,250 | ||||||
| Total | $ 30,408 | $ 215,502 | $ 245,910 | ||||||
| Physical | Equivalent | Equivalent | Equivalent | ||||||
| Units Summary | Units | Units (DM) | Units (CC) | Units (TI) | |||||
| Beginning WIP | 5,000 | 1,000 | 20% | 2,000 | 40% | 5,000 | 100% | ||
| This Period's Work | |||||||||
| Complete Beg WIP | 5,000 | 4,000 | 80% | 3,000 | 60% | - 0 | 0% | ||
| Start & Complete | 14,000 | 14,000 | 100% | 14,000 | 100% | 14,000 | 100% | ||
| Ending WIP | 6,000 | 1,200 | 20% | 3,300 | 55% | 6,000 | 100% | ||
| FIFO Equivalent Units | 25,000 | 19,200 | 20,300 | 20,000 | |||||
| WA Equivalent Units (with Beg WIP) | 20,200 | 22,300 | 25,000 | ||||||
| Equivalent Unit Cost | FIFO | WA | |||||||
| Direct Materials | $ 3.7625 | $ 3.9375 | |||||||
| Conversion Costs | 1.5400 | 1.5750 | |||||||
| Transfer In Costs | 5.6000 | 5.2500 | |||||||
| Total Cost per Equivalent Unit | $ 10.9025 | $ 10.7625 | |||||||
| Cost Assignment | Units | FIFO Cost | Units | WA Cost | |||||
| Beginning WIP | 5,000 | $ 30,408 | |||||||
| Cost to Complete BI | |||||||||
| Direct Materials | 15,050 | ||||||||
| Conversion Costs | 4,620 | ||||||||
| Total Cost BI | 50,078 | ||||||||
| Units Started & Completed | 14,000 | 152,635 | |||||||
| Total Transferred Out | 19,000 | $ 202,713 | 19,000 | $ 204,488 | |||||
| Ending WIP | 6,000 | 6,000 | |||||||
| Direct Materials | 4,515 | 4,725 | |||||||
| Conversion Costs | 5,082 | 5,198 | |||||||
| Transfer In Costs | 33,600 | 31,500 | |||||||
| Total Ending WIP Cost | - 0 | $ 43,197 | $ 41,423 | ||||||
| Total Units and Cost Accounted For | 25,000 | $ 245,910 | 25,000 | $ 245,910 | |||||
Sheet2
Sheet3
PhysicalEquivalent Equivalent
Units SummaryUnitsUnits (DM)Units (CC)
Beginning WIP800 800 100%320 40%
This Period's Work
Complete Beg WIP800 - 0%480 60%
Good Units Start & Complete2,000 2,000 100%2,000 100%
Ending WIP500 500 100%150 30%
Spoiled Units:
Normal Spoilage50 50 100%50 100%
Abnormal Spoilage150 150 100%150 100%
FIFO Equivalent Units3,500 2,700 2,830
Less Spoilage:(200)
Total Good Units 3,300
WA Equivalent Units (with Beg WIP)3,500 3,150
Sheet1
| Beginning | Current | Total | ||||||
| Cost Summary | WIP | Cost | Cost | |||||
| Direct Materials | 2,735 | 8,640 | 11,375 | |||||
| Conversion Costs | 1,302 | 5,943 | 7,245 | |||||
| Total | $ 4,037 | $ 14,583 | $ 18,620 | |||||
| Physical | Equivalent | Equivalent | ||||||
| Units Summary | Units | Units (DM) | Units (CC) | |||||
| Beginning WIP | 800 | 800 | 100% | 320 | 40% | |||
| This Period's Work | ||||||||
| Complete Beg WIP | 800 | - 0 | 0% | 480 | 60% | |||
| Good Units Start & Complete | 2,000 | 2,000 | 100% | 2,000 | 100% | |||
| Ending WIP | 500 | 500 | 100% | 150 | 30% | |||
| Spoiled Units: | ||||||||
| Normal Spoilage | 50 | 50 | 100% | 50 | 100% | |||
| Abnormal Spoilage | 150 | 150 | 100% | 150 | 100% | |||
| FIFO Equivalent Units | 3,500 | 2,700 | 2,830 | |||||
| Less Spoilage: | (200) | |||||||
| Total Good Units | 3,300 | |||||||
| WA Equivalent Units (with Beg WIP) | 3,500 | 3,150 | ||||||
| Equivalent Unit Cost | FIFO | WA | ||||||
| Direct Materials | $ 3.20 | $ 3.25 | ||||||
| Conversion Costs | $ 2.10 | $ 2.30 | ||||||
| Total Cost per Equivalent Unit | $ 5.30 | $ 5.55 | ||||||
| Cost Assignment | Units | FIFO Cost | Units | WA Cost | ||||
| Beginning WIP | 800 | $ 4,037 | ||||||
| Cost to Complete BI | ||||||||
| Direct Materials | - 0 | |||||||
| Conversion Costs | 1,008 | |||||||
| Total Cost BI | 5,045 | |||||||
| Normal Spoilage | 265 | 278 | ||||||
| Good Units Started & Completed | 2,000 | 10,600 | 2,800 | $ 15,540 | ||||
| Total Transferred Out | 2,800 | $ 15,910 | 2,800 | $ 15,818 | ||||
| Abnormal Spoilage | 795 | 833 | ||||||
| Ending WIP | 500 | 500 | ||||||
| Direct Materials | 1,600 | 1,625 | ||||||
| Conversion Costs | 315 | 345 | ||||||
| Total Ending WIP Cost | $ 1,915 | $ 1,970 | ||||||
| Total Units and Cost Accounted For | 3,300 | $ 18,620 | 3,300 | $ 18,620 | ||||
Sheet2
Sheet3
DMCCTotal
Work in process, June $2,735$1,302$4,037
Costs added in June$8,640$5,943$14,583
Total$11,375$7,245$18,620
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
Acct for costs no TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs w TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Crusher given $ info
| DM | CC | TI | Total | |
| Work in process, May 1 | $7,297.50 | $3,860.50 | $19,250.00 | $30,408.00 |
| Costs added in May | 72,240.00 | 31,262.00 | 112,000.00 | 215,502.00 |
| Total | $79,537.50 | $35,122.50 | $131,250.00 | $245,910.00 |
spoilage EUP template
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Sp'd Units | ||
| Phys units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
spoilage
| Assumptions | |||||||||||
| Beginning WIP - units | 800 | Costs: | DM | CC | Total | ||||||
| % complete DM | 100% | Beg WIP | $2,735 | $1,302 | $4,037 | ||||||
| % complete CC | 40% | Current | 8,640 | 5,943 | $14,583 | ||||||
| Units started | 2,700 | Total | $11,375 | $7,245 | $18,620 | ||||||
| Good units completed and transferred out | 2,800 | ||||||||||
| Spoiled units | 200 | ||||||||||
| NS-% of good units | 2% | ||||||||||
| Ending WIP - units | 500 | Units to account for: | |||||||||
| % complete DM | 100% | Beginning WIP | 800 | ||||||||
| % complete CC | 30% | Units started | 2,700 | ||||||||
| 3,500 | |||||||||||
| Summarize Physical and Equivalent Units: | |||||||||||
| Beginning WIP | Work This Period | Total Work Performed this Period | Total Units to Account For | Spoiled Units | |||||||
| Complete BI | Start and Complete | Start Ending WIP | |||||||||
| Account for Physical Units | 800 | 2,200 | 500 | 2,700 | 3,500 | (200) | |||||
| Equivalent Units: | Total FIFO EUP | Total Wtd Avg EUP | |||||||||
| DM | 800 | 0 | 2,200 | 500 | 2,700 | 3,500 | (200) | ||||
| CC | 320 | 480 | 2,200 | 150 | 2,830 | 3,150 | (200) | ||||
| Total spoilage | 200 | ||||||||||
| Less: Normal Spoilage | 50 | ||||||||||
| Abnormal Spoilage | 150 | ||||||||||
| Calculate Cost per EUP: | |||||||||||
| Cost | EUP | Cost/EUP | |||||||||
| FIFO: | |||||||||||
| DM | $8,640 | 2,700 | $3.2000 | ||||||||
| CC | $5,943 | 2,830 | 2.1000 | ||||||||
| $5.3000 | |||||||||||
| Weighted average: | |||||||||||
| DM | $11,375 | 3,500 | $3.2500 | ||||||||
| CC | $7,245 | 3,150 | 2.3000 | ||||||||
| $5.5500 | |||||||||||
| Process Cost Report Cost Assignment: | |||||||||||
| FIFO | Weighted Average | ||||||||||
| Computation | Units | Costs | Computation | Units | Costs | ||||||
| Beginning WIP | 800 | $4,037 | |||||||||
| Cost to complete beginning WIP: | |||||||||||
| DM | (0 x $7.0367) | 0 | |||||||||
| CC | (7,200 x $3.0753) | 1,008 | |||||||||
| Total costs added this period | 1,008 | ||||||||||
| Total cost of beginning WIP | 5,045 | ||||||||||
| Normal spoilage | (1,240 x $10.112) | 50 | 265 | 50 | $278 | ||||||
| Good units started, completed, & tr'd out | (50,000 x $10.112) | 2,000 | 10,600 | ||||||||
| Good Units Completed & tr'd out | (62,000 x $9.8125) | 2,800 | 15,540 | ||||||||
| Total completed & transferred out (incl spoilage) | 2,850 | 15,910 | 2,850 | 15,818 | |||||||
| Abnormal spoilage | (760 x $10.112) | 150 | 795 | (760 x $9.8125) | 150 | 833 | |||||
| Ending WIP: | 500 | 500 | |||||||||
| DM | (8,000 x $7.0367)) | 1,600 | (8,000 x $6.4444) | 1,625 | |||||||
| CC | (2,400 x $3.0753)) | 315 | (2,400 x $3.3681) | 345 | |||||||
| Total ending WIP cost | 1,915 | 1,970 | |||||||||
| Total accounted for | 3,500 | $18,620 | 3,500 | $18,620 |
spoilage cost given info
| DM | CC | Total | |
| Work in process, June 1 | $2,735 | $1,302 | $4,037 |
| Costs added in June | $8,640 | $5,943 | $14,583 |
| Total | $11,375 | $7,245 | $18,620 |
EUP schedule
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with TI
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| TI |
EUP schedule with spoilage
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Spoiled Units | ||
| Physical units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
Acct for costs no TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
summarize costs
| BI | Comp BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | ||
| Physical units | ||||||||
| Equiv units | ||||||||
| DM | ||||||||
| CC | ||||||||
| Cost/EUP: |
Acct for costs w TI
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| TI | |||||||
| Total EI costs | |||||||
| Total acctd for |
Acct for spoilage
| FIFO | Weighted Average | ||||||
| Computation | Units | Costs | Computation | Units | Costs | ||
| BI | |||||||
| Cost to compl BI | |||||||
| DM | |||||||
| CC | |||||||
| Total costs added | |||||||
| Total cost of BI | |||||||
| Normal spoilage | |||||||
| S&C | |||||||
| Total costs tr'd out | |||||||
| Abnormal spoilage | |||||||
| EI: | |||||||
| DM | |||||||
| CC | |||||||
| Total EI costs | |||||||
| Total acctd for |
Partial EUP colors demo
| Equiv units | WA EUP | FIFO EUP | |
| DM | 63,700 | 57,500 | |
| CC | 60,950 | 57,230 | |
| Cost/EUP: |
Crusher given $ info
| DM | CC | TI | Total | |
| Work in process, May 1 | $7,297.50 | $3,860.50 | $19,250.00 | $30,408.00 |
| Costs added in May | 72,240.00 | 31,262.00 | 112,000.00 | 215,502.00 |
| Total | $79,537.50 | $35,122.50 | $131,250.00 | $245,910.00 |
spoilage EUP template
| BI | Comp-lete BI | S&C | Start EI | WA EUP | FIFO EUP | Total Units | Sp'd Units | ||
| Phys units | |||||||||
| Equiv units | |||||||||
| DM | |||||||||
| CC |
spoilage
| Assumptions | |||||||||||
| Beginning WIP - units | 800 | Costs: | DM | CC | Total | ||||||
| % complete DM | 100% | Beg WIP | $2,735 | $1,302 | $4,037 | ||||||
| % complete CC | 40% | Current | 8,640 | 5,943 | $14,583 | ||||||
| Units started | 2,700 | Total | $11,375 | $7,245 | $18,620 | ||||||
| Good units completed and transferred out | 2,800 | ||||||||||
| Spoiled units | 200 | ||||||||||
| NS-% of good units | 2% | ||||||||||
| Ending WIP - units | 500 | Units to account for: | |||||||||
| % complete DM | 100% | Beginning WIP | 800 | ||||||||
| % complete CC | 30% | Units started | 2,700 | ||||||||
| 3,500 | |||||||||||
| Summarize Physical and Equivalent Units: | |||||||||||
| Beginning WIP | Work This Period | Total Work Performed this Period | Total Units to Account For | Spoiled Units | |||||||
| Complete BI | Start and Complete | Start Ending WIP | |||||||||
| Account for Physical Units | 800 | 2,200 | 500 | 2,700 | 3,500 | (200) | |||||
| Equivalent Units: | Total FIFO EUP | Total Wtd Avg EUP | |||||||||
| DM | 800 | 0 | 2,200 | 500 | 2,700 | 3,500 | (200) | ||||
| CC | 320 | 480 | 2,200 | 150 | 2,830 | 3,150 | (200) | ||||
| Total spoilage | 200 | ||||||||||
| Less: Normal Spoilage | 50 | ||||||||||
| Abnormal Spoilage | 150 | ||||||||||
| Calculate Cost per EUP: | |||||||||||
| Cost | EUP | Cost/EUP | |||||||||
| FIFO: | |||||||||||
| DM | $8,640 | 2,700 | $3.2000 | ||||||||
| CC | $5,943 | 2,830 | 2.1000 | ||||||||
| $5.3000 | |||||||||||
| Weighted average: | |||||||||||
| DM | $11,375 | 3,500 | $3.2500 | ||||||||
| CC | $7,245 | 3,150 | 2.3000 | ||||||||
| $5.5500 | |||||||||||
| Process Cost Report Cost Assignment: | |||||||||||
| FIFO | Weighted Average | ||||||||||
| Computation | Units | Costs | Computation | Units | Costs | ||||||
| Beginning WIP | 800 | $4,037 | |||||||||
| Cost to complete beginning WIP: | |||||||||||
| DM | (0 x $7.0367) | 0 | |||||||||
| CC | (7,200 x $3.0753) | 1,008 | |||||||||
| Total costs added this period | 1,008 | ||||||||||
| Total cost of beginning WIP | 5,045 | ||||||||||
| Normal spoilage | (1,240 x $10.112) | 50 | 265 | 50 | $278 | ||||||
| Good units started, completed, & tr'd out | (50,000 x $10.112) | 2,000 | 10,600 | ||||||||
| Good Units Completed & tr'd out | (62,000 x $9.8125) | 2,800 | 15,540 | ||||||||
| Total completed & transferred out (incl spoilage) | 2,850 | 15,910 | 2,850 | 15,818 | |||||||
| Abnormal spoilage | (760 x $10.112) | 150 | 795 | (760 x $9.8125) | 150 | 833 | |||||
| Ending WIP: | 500 | 500 | |||||||||
| DM | (8,000 x $7.0367)) | 1,600 | (8,000 x $6.4444) | 1,625 | |||||||
| CC | (2,400 x $3.0753)) | 315 | (2,400 x $3.3681) | 345 | |||||||
| Total ending WIP cost | 1,915 | 1,970 | |||||||||
| Total accounted for | 3,500 | $18,620 | 3,500 | $18,620 |
spoilage cost given info
| DM | CC | Total | |
| Work in process, June 1 | $2,735 | $1,302 | $4,037 |
| Costs added in June | $8,640 | $5,943 | $14,583 |
| Total | $11,375 | $7,245 | $18,620 |
Cost AssignmentUnitsWA Cost
Beginning WIP
Cost to Complete BI
Direct Materials
Conversion Costs
Total Cost BI
Normal Spoilage278
Good Units Started & Completed2,800 15,540$
Total Transferred Out2,800 15,818$
Abnormal Spoilage833
Ending WIP500
Direct Materials1,625
Conversion Costs345
Total Ending WIP Cost1,970$
Total Units and Cost Accounted For3,300 18,620$
Sheet1
| Beginning | Current | Total | ||||||
| Cost Summary | WIP | Cost | Cost | |||||
| Direct Materials | 2,735 | 8,640 | 11,375 | |||||
| Conversion Costs | 1,302 | 5,943 | 7,245 | |||||
| Total | $ 4,037 | $ 14,583 | $ 18,620 | |||||
| Physical | Equivalent | Equivalent | ||||||
| Units Summary | Units | Units (DM) | Units (CC) | |||||
| Beginning WIP | 800 | 800 | 100% | 320 | 40% | |||
| This Period's Work | ||||||||
| Complete Beg WIP | 800 | - 0 | 0% | 480 | 60% | |||
| Good Units Start & Complete | 2,000 | 2,000 | 100% | 2,000 | 100% | |||
| Ending WIP | 500 | 500 | 100% | 150 | 30% | |||
| Spoiled Units: | ||||||||
| Normal Spoilage | 50 | 50 | 100% | 50 | 100% | |||
| Abnormal Spoilage | 150 | 150 | 100% | 150 | 100% | |||
| FIFO Equivalent Units | 3,500 | 2,700 | 2,830 | |||||
| Less Spoilage: | (200) | |||||||
| Total Good Units | 3,300 | |||||||
| WA Equivalent Units (with Beg WIP) | 3,500 | 3,150 | ||||||
| Equivalent Unit Cost | FIFO | WA | ||||||
| Direct Materials | $ 3.20 | $ 3.25 | ||||||
| Conversion Costs | $ 2.10 | $ 2.30 | ||||||
| Total Cost per Equivalent Unit | $ 5.30 | $ 5.55 | ||||||
| Cost Assignment | Units | FIFO Cost | Units | WA Cost | ||||
| Beginning WIP | 800 | $ 4,037 | ||||||
| Cost to Complete BI | ||||||||
| Direct Materials | - 0 | |||||||
| Conversion Costs | 1,008 | |||||||
| Total Cost BI | 5,045 | |||||||
| Normal Spoilage | 265 | 278 | ||||||
| Good Units Started & Completed | 2,000 | 10,600 | 2,800 | $ 15,540 | ||||
| Total Transferred Out | 2,800 | $ 15,910 | 2,800 | $ 15,818 | ||||
| Abnormal Spoilage | 795 | 833 | ||||||
| Ending WIP | 500 | 500 | ||||||
| Direct Materials | 1,600 | 1,625 | ||||||
| Conversion Costs | 315 | 345 | ||||||
| Total Ending WIP Cost | $ 1,915 | $ 1,970 | ||||||
| Total Units and Cost Accounted For | 3,300 | $ 18,620 | 3,300 | $ 18,620 | ||||
Sheet2
Sheet3
Cost AssignmentUnitsFIFO Cost
Beginning WIP800 4,037$
Cost to Complete BI
Direct Materials-
Conversion Costs1,008
Total Cost BI5,045
Normal Spoilage265
Good Units Started & Completed2,000 10,600
Total Transferred Out2,800 15,910$
Abnormal Spoilage795
Ending WIP500
Direct Materials1,600
Conversion Costs315
Total Ending WIP Cost1,915$
Total Units and Cost Accounted For3,300 18,620$
Sheet1
| Beginning | Current | Total | ||||||
| Cost Summary | WIP | Cost | Cost | |||||
| Direct Materials | 2,735 | 8,640 | 11,375 | |||||
| Conversion Costs | 1,302 | 5,943 | 7,245 | |||||
| Total | $ 4,037 | $ 14,583 | $ 18,620 | |||||
| Physical | Equivalent | Equivalent | ||||||
| Units Summary | Units | Units (DM) | Units (CC) | |||||
| Beginning WIP | 800 | 800 | 100% | 320 | 40% | |||
| This Period's Work | ||||||||
| Complete Beg WIP | 800 | - 0 | 0% | 480 | 60% | |||
| Good Units Start & Complete | 2,000 | 2,000 | 100% | 2,000 | 100% | |||
| Ending WIP | 500 | 500 | 100% | 150 | 30% | |||
| Spoiled Units: | ||||||||
| Normal Spoilage | 50 | 50 | 100% | 50 | 100% | |||
| Abnormal Spoilage | 150 | 150 | 100% | 150 | 100% | |||
| FIFO Equivalent Units | 3,500 | 2,700 | 2,830 | |||||
| Less Spoilage: | (200) | |||||||
| Total Good Units | 3,300 | |||||||
| WA Equivalent Units (with Beg WIP) | 3,500 | 3,150 | ||||||
| Equivalent Unit Cost | FIFO | WA | ||||||
| Direct Materials | $ 3.20 | $ 3.25 | ||||||
| Conversion Costs | $ 2.10 | $ 2.30 | ||||||
| Total Cost per Equivalent Unit | $ 5.30 | $ 5.55 | ||||||
| Cost Assignment | Units | FIFO Cost | Units | WA Cost | ||||
| Beginning WIP | 800 | $ 4,037 | ||||||
| Cost to Complete BI | ||||||||
| Direct Materials | - 0 | |||||||
| Conversion Costs | 1,008 | |||||||
| Total Cost BI | 5,045 | |||||||
| Normal Spoilage | 265 | 278 | ||||||
| Good Units Started & Completed | 2,000 | 10,600 | 2,800 | $ 15,540 | ||||
| Total Transferred Out | 2,800 | $ 15,910 | 2,800 | $ 15,818 | ||||
| Abnormal Spoilage | 795 | 833 | ||||||
| Ending WIP | 500 | 500 | ||||||
| Direct Materials | 1,600 | 1,625 | ||||||
| Conversion Costs | 315 | 345 | ||||||
| Total Ending WIP Cost | $ 1,915 | $ 1,970 | ||||||
| Total Units and Cost Accounted For | 3,300 | $ 18,620 | 3,300 | $ 18,620 | ||||
