Step 1: Prepare a quantity schedule and compute the Equivalent Units

Quantity
Units to be accounted for: Schedule
(Units)
Beginning WIP
Started production this period
Total units
Equivalent Units
Units accounted for as follows: Material Conversion
Transferred out to next department
Ending WIP (__% material: __% conversion)
Total units and equivalent units of production

Step 2: Compute costs per Equivalent Unit

Costs to be accounted for: Total cost Materials Conversion Whole unit
Beginning WIP
Costs added to this department
Total costs (a)
EU of production (from step 1) (b)
Cost per EU (a/b)

Step 3: Prepare a Cost Reconciliation

Equivalent Units (from step 1)
Cost accounted for as follows: Total Cost Materials Conversion
Transferred to next department (EU x whole
cost per EU)
Ending WIP (materials: EU x $/EU)
Ending WIP (conversion: EU x $/EU)
Total ending WIP
Total cost