4-2

Cos per equaivalent unit = cost of beginning + cost added

during the
Work in proceess inventory period
Equivalent units of production

Unit material
conversion

Beginning WIP 30000 65%

30%
Unit Started in to production 175000
Unit completed during october
Transferred to next department 190000 100%
100%
Ending WIP 15000
80% 40%

Material
conversion
Unit transferred to the next department
Ending WIP :
Material : 15000 x 80%
12000
Conversion : 15000 x 40%
60000
Equivalent unit of production
202000 196000

4-3
Material labour
overhead
1800 5500
27500
238900 80300
401500
Jum.kos ÷ 256900 85800
429000
u.p.p 35000 33000
33000
k.p.seunit $7.34 $2.6 $13

material cnversion total

unit psmaan pgluarn wip 300 100
kos seunit psmaan 31.56 9.32
9468 932
10400

u.t.t.next.departmt 1300 1300

cos per equi unit 31.56 9.32
cost per unit transferred out 41028 12116
53144

4-4

Material
Conversion
Equivalent unit of production in ending WIP 300
100
Cost per equiavalent unit $31.56
$9.35
Cost of the unit transferred to next 9468 935
10403
department
4-5
Material
conversion
Beginning WIP
Material : 400 units X ( 100% -75% ) 100
Conversion : 400 units X (100% -25% ) 300
Unit started into production during the month 42600
42600
Unit completed and transferred out 42500 42500
ending WIP
Material : 500 units X 80% complete 400
Conversion : 500 units X 30 % complete
150
Equiavalent units of production
85600 85550
4-6

Cost added during the period

Cost per equivalent unit = ____________________________
Equivalent unit of production

Material labour overhead

Cost added during the may $193320 $62000 $310000
Equivalent unit of product 27000 25000
25000
Cost per equivalent unit $7.16 $2.48
$12.4 total=$22.4
4-7
Material conversion
total
Ending wip inventory
equi unit of production 800 200
Cost per equi. Unit $4.40
$1.30
Cost of ending wip inventory $3520 $260
$3780
Unit transferred out
cost in beginning wip inventory $2700
$380 $3080
cost to complete the unit in beginning wip invtory
equivalent unit of pd r.t.c.t.unit in bignning invtry 400 700
cost per equivalent unit 4.40 1.30
cost to cmplete the u.in bginning intry 1760 910
2670
cost of unit started & completed the period
unit started and completed this period 7000 7000
cost per equivalent unit $4.40
$1.30
cost of unit started and completed this period 30800 9100
39900
total of unit transferred out
45650