BUS 121  Managerial Accounting
Chapter 4 – Handout #2 Solution
Process Costing – Calculation of Equivalent Units
Calculation of Equivalent Units, Two Methods:
Using the following data, figure the number of equivalent units for material and conversion costs, first
using the weighted average method and then the FIFO method: (
Note:
For the FIFO method, please
complete the 3step format as shown on p. 165 of your text; if you wish to use the alternative format on
p. 166, top of page, add that one as a second schedule.)
Beginning WIP Inventory
25,000 units, 80% complete with respect to
materials, and 40% complete with respect to
conversion costs.
Added to production, units started
195,000 units
Completed and transferred
180,000 units
Ending WIP Inventory
40,000 units, 75% complete with respect to
materials, and 60% complete with respect to
conversion costs.
1.
Weighted Average Method:
Materials
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This note was uploaded on 06/26/2009 for the course ACC 400 taught by Professor Kim during the Summer '08 term at Grossmont.
 Summer '08
 KIM
 Managerial Accounting

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