AMIS 525

percent complete work in process

[to show, by example, that beginning degree of completion,

using the weighted-average cost flow method, is irrelevant]

ewu

physical units

B
A
T
S
E
Costs:

60
140
200
160
40
$180.00
$1,200.00
$1,380.00

Version 1
% done ewu
0.3333

20

0.5

20

Version 2
% done
ewu
0.5

30

0.5

20

old
new
total

Solution:

start of
period

during the
period

end of
period

Beginning
60

Started
140
Completed
100

STEP 1
Physical

Ending

Units

40

200

Analysis

160
Completed
Version 1
B
60

S&F
100

% @ START
% ADDED
% @ END

33%
67%
100%

0%
100%
100%

0%
50%
50%

E. U. @ Start
E. U. Added
E. U. @ End

20
40
60

0
100
100

0
20
20

60

S&F
100

% @ START
% ADDED
% @ END

50%
50%
100%

0%
100%
100%

0%
50%
50%

E. U. @ Start
E. U. Added
E. U. @ End

30
30
60

0
100
100

0
20
20

T
40

STEP 2
200

Equivalent
Units
Calculation

20 OLD
160 NEW
180 TOTAL

Version 2
B
Q

T
40

STEP 2
200

Equivalent
Units

Version 1
cost
cost / ewu
20
$180.00
$9.00
160 $1,200.00
$7.50
180 $1,380.00
$7.67

ewu

FG
WIP

Version 1 and Version 2

160
$7.67
20
$7.67

1/9/2014

Version 2
cost
30
$180.00
150 $1,200.00
180 $1,380.00

ewu

$1,227
$153
$1,380

OUT
E

Calculation

30 OLD
150 NEW
180 TOTAL

cost / ewu
$6.00
$8.00
$7.67

STEP 3
Cost Per
Equivalent
Whole Unit

STEP 4
Cost
Allocation