Work in Process Work in Process

Account Account

Direct to
to Finished
Finished
materials Goods
Goods
Direct Factory Direct Factory
Labor Overhead Labor Overhead
Quantity schedule :
Units transferred from previous dep.
Units completed.
WIP units.
Units lost or added.

Cost schedule :
Cost of Material.
Cost of labor.
Cost of FOH.

Equivalent production cost:

In it we calculate the Conversion cost.
Cost accounted as follows:
In it we calculate cost of completed units and cost
of units in process.