Chapter 4 - Process Costing Once beginning inventory costs...

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Process Costing Once beginning inventory costs and manufacturing costs are sub-totaled, the problem arises, how much of these combined costs go to ending inventory vs. finished goods? If a product in ending inventory is 80% done, then it should be allocated 80% of the cost of a completed unit; if a product in ending inventory is 10% done, then it should show about 10% of the cost of a completed unit. So, step one is to figure about how many equivalent units of effort have been produced this period.
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Equivalent Units of Production Equivalent Units (EU): Total number of units that could have been produced if all efforts had been redirected to finishing a started unit before starting a new unit. If I have 12 units that I started and finished this month, and 8 units that I started but are only 75% complete, then I have: (12 units finished + (8 * 75% = )6 equivalent units in ending work-in-process inventory = ) 18 equivalent units of production total.
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But, what if materials are added mostly at
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Chapter 4 - Process Costing Once beginning inventory costs...

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