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process costing

process costing - CC Units to account for Beginning WIP...

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1 Remember the basic inventory model (BASE): (B) Beginning inventory + (A) Additions or increases – (S) subtractions or decreases = (E) Ending balance. Assume all amounts are in “DOLLARS,” manipulate it a little bit and modify it for WIP Inventories Beginning inventory Beginning WIP inventory Plus: Purchases (increases) Plus: Additions (Increases) Equals: Available for sale Equals: Total to account for Less: COGS (decreases) Less: Completed & transferred Equals: Ending inventory out (or decreases) Equals: Ending WIP inventory Modified for WIP OR, we can say Beginning WIP inventory Plus: Additions Equals Equals Plus: Ending WIP inventory Total Costs to account for Total Costs accounted for (All B-WIP units are incomplete)

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2 E4-31 Requirements 2, 3 & 4: Physical Step 1: Summarize flow of P.U. Units DM
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Unformatted text preview: CC Units to account for: Beginning WIP, March 1 + Units started during March Total physical units to account for Units accounted for: Completed & transferred out (6,550 x 100%; 6,550 x 100%) + Ending WIP March 31 (1,450 x 100%; 1,450 x 80%) = Units Accounted for Equivalent Units DM CC Total Beginning WIP, March 1 \$ \$ \$ Costs added during March Costs to account for Divide by equivalent units produced Cost per equivalent unit \$ \$ Step 5: Assign costs to units completed & EWIP Units completed and transferred out \$ Ending WIP, March 31 Direct materials Conversion costs Total E-WIP, March 31 Costs accounted for \$ Equivalent Units Step 3 & 4: Summarize total costs to account for & calculate cost per equivalent unit (6,550 x (\$1.45 + \$0.90)) (1,450 x \$1.45) (1,160 x \$0.90) Step 2: Calculate E.U....
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process costing - CC Units to account for Beginning WIP...

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