Month X Y or Cost Y-Yavg X-Xavg (X-Xavg)^2 (Y-Yavg)^2

1 34,000 $ 660 $ 5 $ -1,000 $ 1,000,000 $ 25

2 30,000 $ 590 $ -65 $ -5,000 $ 25,000,000 $ 4,225
3 34,000 $ 660 $ 5 $ -1,000 $ 1,000,000 $ 25
4 39,000 $ 680 $ 25 $ 4,000 $ 16,000,000 $ 625
5 42,000 $ 740 $ 85 $ 7,000 $ 49,000,000 $ 7,225
6 32,000 $ 610 $ -45 $ -3,000 $ 9,000,000 $ 2,025
7 26,000 $ 580 $ -75 $ -9,000 $ 81,000,000 $ 5,625
8 26,000 $ 550 $ -105 $ -9,000 $ 81,000,000 $ 11,025
9 31,000 $ 630 $ -25 $ -4,000 $ 16,000,000 $ 625
10 35,000 $ 640 $ -15 $ - $ - $ 225
11 43,000 $ 750 $ 95 $ 8,000 $ 64,000,000 $ 9,025
12 48,000 $ 770 $ 115 $ 13,000 $ 169,000,000 $ 13,225
420,000 $ 7,860 $ - $ - $ 512,000,000 $ 53,900
Average/Avg 35,000 $ 655
Fill Y according to X Fill Y according to X
a.Hi and Lo method
X Y Y
Hi $ 48,000 $ 680 Hi $ 680
Lo $ 26,000 $ 500 Lo $ 500
$ 22,000 $ 180
Variable rate $ 0.00818

b.Least squares method

Yavg=a+BX
a= Fixed cost b= $ 0.01000
X=Variable cost
a= $ 305.0
(X-Xavg) (Y-Yavg) Y'=a+BX Y-Y' (Y-Y')^2 Standard 16.432
$ -5,000 $ 645 $ 15 $ 225 Deviation
$ 325,000 $ 605 $ -15 $ 225
$ -5,000 $ 645 $ 15 $ 225
$ 100,000 $ 695 $ -15 $ 225
$ 595,000 $ 725 $ 15 $ 225
$ 135,000 $ 625 $ -15 $ 225
$ 675,000 $ 565 $ 15 $ 225
$ 945,000 $ 565 $ -15 $ 225
$ 100,000 $ 615 $ 15 $ 225
$ - $ 655 $ -15 $ 225
$ 760,000 $ 735 $ 15 $ 225
$ 1,495,000 $ 785 $ -15 $ 225
$ 5,120,000 $ 7,860 $ - $ 2,700

V.rate*X Fixed cost

393 $ 287
213 $ 287
 First Department This colored cell is for data

1.Quantity Schedule
Materials Labor Overhead Quantity
Beginning Inventory 4000
INPUT Started in process this period 36000
Added to process 0
40000

Transferred to next dept 28000

OUTPUT Ending inventory 100% 40% 40% 6000
Lost in process 0% 0% 0% 6000
40000 as zero because
We assume percentage of Lost in process/spoilage
process/spoilage is not charged to factory overhead control due to
shrinkage
2.Equivalent units
Materials Labor Overhead
Equivalent units transferred out 28000 28000 28000
Equivalent units in ending inventory 6000 2400 2400
Equivalent units of spoilage 0 0 0
Total equivalent units 34000 30400 30400

3.Cost charged to department (INPUT COST)

Beginning Inventory Total cost Equivalent units unit cost
Materials $ 600
Labor $ 88
Factory overhead $ 128
Total cost in beginning inventory $ 816

Cost added during current period

Materials $ 4,840 34000 $ 0.16
Labor $ 824 30400 $ 0.03
Factory overhead $ 1,088 30400 $ 0.04
Total cost added during current period $ 6,752

Total cost charged to department $ 7,568 $ 0.23 Fill the spoiled units
salvage value

4.Cost accounted for (OUTPUT COST)

Units Percent Complete Unit cost
Transferred to next dept 28000 $ 0.23
Fill the salvaged units
Transferred to spoiled goods inventory
at salvage value
Charged to FOH for spoilage
Materials 6000 0% $ 0.16 $0
Labor 6000 0% $ 0.03 $0
Factory overhead 6000 0% $ 0.04 $0
 Less:salvage value of spoiled units $0

WIP ending inventory

Materials 6000 100% $ 0.16 $960
Labor 6000 40% $ 0.03 $72
Factory overhead 6000 40% $ 0.04 $96

Total cost accounted for

 Second Department
*if there are more than two departments
1.Quantity Schedule simply copy from the second department and so on
Materials Labor
Beginning Inventory
INPUT Started in process this period
Added to process

Transferred to next dept

OUTPUT Ending inventory 100% 60%
Lost in process 100% 80%
s/spoilage as zero because Lost in
ry overhead control due to normal

2.Equivalent units
From preceeding dept Materials
Equivalent units transferred out 25000 25000
Equivalent units in ending inventory 1000 1000
Equivalent units of spoilage 4000 4000
Total equivalent units 30000 30000

3.Cost charged to department (INPUT COST)

Beginning Inventory Total cost Equivalent units
Cost from preceeding dept $ 550
Materials $ 190
Labor $ 75
Factory overhead $ 150
Total cost in beginning inventory $ 965
Cost transferred from previous de
Cost added during current period
Cost from preceeding dept $ 6,440 30000
Materials $ 1,520 30000
Labor $ 789 28800
Factory overhead $ 1,578 28800
Fill the spoiled units Total cost added during current period $ 10,327
salvage value

Total cost charged to department $ 11,292

Total cost
don’t forget to transfer this to next dept
$ 6,440 4.Cost accounted for (OUTPUT COST)
Units Percent Complete
$0 Transferred to next dept 25000
Transferred to spoiled goods inventory Fill the sold units
at salvage value
Charged to FOH control for spoilage
Cost from preceeding dept 4000 100%
 Materials 4000 100%
$0 Labor 4000 80%
Factory overhead 4000 80%

Less:salvage value of spoiled units

WIP ending inventory
$1,128 Cost from preceeding dept 1000 100%
Materials 1000 100%
$ 7,568 Labor 1000 60%
Factory overhead 1000 60%

Total cost accounted for

 cell colored like this is for data

epartment and so on
Overhead Quantity
2000
28000
0
30000

25000
60% 1000
80% 4000
30000

Labor Overhead
25000 25000
600 600
3200 3200
28800 28800

unit cost

ransferred from previous dept

$ 0.23
$ 0.06
$ 0.03
$ 0.06

$ 0.38
Fill the spoiled units
salvage value

Unit cost Total cost

$ 0.38 $ 9,500
the sold units
$0

$ 0.23 $932
$ 0.06 $228
$ 0.03 $96
$ 0.06 $192

$0 $1,448

$ 0.23 $233
$ 0.06 $57
$ 0.03 $18
$ 0.06 $36 $344

$ 11,292
 First Department cell colored like this is for data

1.Quantity Schedule
Materials Labor Overhead
Beginning Inventory 100% 70% 70%
INPUT Started in process this period
Added to process

Transferred to next dept

OUTPUT Ending inventory 100% 40% 40%
Lost in process 100% 60% 60%

2.Equivalent units
Materials Labor Overhead
To compute beginning inventory 0 600 600
Started and completed this period 7000 7000 7000
Equivalent units in ending inventory 1500 600 600
Equivalent units of spoilage 500 300 300
Total equivalent units 9000 8500 8500

3.Cost charged to department (INPUT COST)

Beginning Inventory Total cost Equivalent units unit cost
Materials $ 1,900
Labor $ 340
Factory overhead $ 1,020
Total cost in beginning inventory $ 3,260

Cost added during current period

Materials $ 9,180 9000 $ 1.02
Labor $ 2,125 8500 $ 0.25
Factory overhead $ 6,375 8500 $ 0.75
Total cost added during current period $ 17,680

Total cost charged to department $ 20,940 $ 2.02

4.Cost accounted for (OUTPUT COST)

Units Percent Complete Unit cost
Transferred to next dept
From beginning inventory:
Cost to complete
Materials 2000 0% $ 1.02
Labor 2000 30% $ 0.25
 Factory overhead 2000 30% $ 0.75
Started and completed this period 7000 100% $ 2.02
Total cost transferred to next dept Fill the salvaged units
Transferred to spoiled goods inventory
at salvage value
Charged to FOH for spoilage F
Materials 500 100% $ 1.02 s
Labor 500 60% $ 0.25
Factory overhead 500 60% $ 0.75

Less:salvage value of spoiled units

WIP ending inventory

Materials 1500 100% $ 1.02
Labor 1500 40% $ 0.25
Factory overhead 1500 40% $ 0.75

Total cost accounted for

ored like this is for data Second Department

1.Quantity Schedule
Quantity
2000 Beginning Inventory
9000 INPUT Started in process this period
0 Added to process
11000

9000 Transferred to next dept

1500 OUTPUT Ending inventory
500 Lost in process
11000

2.Equivalent units

To compute beginning inventory

Started and completed this period
Equivalent units in ending inventory
Equivalent units of spoilage
Total equivalent units

3.Cost charged to department (INPUT COST)

Beginning Inventory
Cost from preceeding dept
Materials
Labor
Factory overhead
Total cost in beginning inventory

Cost added during current period

Cost from prceeding dept
Materials
Labor
Factory overhead
Total cost added during current period

Total cost charged to department

Total cost
$3,260 4.Cost accounted for (OUTPUT COST)

Transferred to next dept from beginning

inventory
$0
$150 Cost to complete
$450 $600 Materials
$14,140 Labor
$18,000 Factory overhead
Started and completed this period
$0 Total cost transferred to next dept
Fill the spoiled units Transferred to spoiled goods inventory
$510 salvage value at salvage value
$75 Charged to FOH for spoilage
$225 Cost from preceeding dept
Materials
$0 $810 Labor
Factory overhead

$1,530 Less:salvage value of spoiled units

$150
$450 $2,130 WIP ending inventory
Cost from preceeding dept
$ 20,940 Materials
Labor
Factory overhead

Total cost accounted for

Second Department cell colored like this is for data
*if there are more than two departments,
simply copy from the second department and so on
Materials Labor Overhead Quantity
100% 40% 40% 3000
9000
0
12000

9900
100% 60% 60% 2000
100% 100% 100% 100
12000

From preceeding dept Materials Labor Overhead

0 0 1800 1800
6900 6900 6900 6900
2000 2000 1200 1200
100 100 100 100
9000 9000 10000 10000

Total cost Equivalent units unit cost

$ 6,100
$ 3,500
$ 520
$ 780
$ 10,900

$ 18,000 9000 $ 2
$ 10,800 9000 $ 1.20
$ 4,000 10000 $ 0.40
$ 6,000 10000 $ 0.60
$ 38,800

$ 49,700 $ 4.20

Units Percent Complete Unit cost Total cost

$10,900
3000 0% $ 1.20 $0
3000 60% $ 0.40 $720
3000 60% $ 0.60 $1,080 $1,800
6900 100% $ 4.20 $28,980
$41,680
Fill the salvaged units
Fill the spoiled units
100 $ 1.00 salvage value $100

100 100% $ 2 $200

100 100% $ 1.20 $120
100 100% $ 0.40 $40
100 100% $ 0.60 $60

$100 $320

2000 100% $ 2 $4,000

2000 100% $ 1.20 $2,400
2000 60% $ 0.40 $480
2000 60% $ 0.60 $720 $7,600

$ 49,700