Process costing= is a method of costing homogenous products produced in a continuous

process in which costs cannot be accumulated by the batch or job order

Homogenous= similar

2 methods of costing:
1) First in, first out method
2) Weighted average method

Step 1: Compute the ending work in process in units

(Alamin kung ilang units ang hindi pa tapos gawin)

*Beginning inventory work in process

Ilang units yung nasimulan before, itutuloy nalang ngayon
*Started (transferred in) -kung merong 2 department
-no. of units na sinimulan gawin in this period
*Completed -sa balak tapusin this period ilan ang totoong natapos

Ex. Yung lamesa na di natapos last month magiging beginning this month. (Beginning)
Tapos nagsimula ng panibagong lamesa (units started)

*yung nacomplete ng isang department hindi pa yun magiging finished goods

-magiging transferred out
*yung transferred out ng isang department magiging transferred in ng isang department
Step 2: Compute the equivalent unit of production (EUP)

Incomplete X degree of completion

(Ex. Kung nabigay mo lang sana ang effort sa mga hotdog na kaya tapusin, ilan sana ang
iyong naproduce)
(Ex. Kung inalay sana ang 4 na oras sa isang subject nakatapos sana ng isang subject)

FIFO- yung unang nasimulan yun din unang tatapusin

*no. Of completed paghihiwalayin sa dalawa

*kailangan malaman saan nanggaling yung units na nacomplete ngayon
*yung units na nacomplete ba itutuloy mo lang pero nasimulan na dati o ngayon lang
nasimulan
*continued and completed= beginning inventory
*started and completed= no. Of units completed minus beginning
(Inisqueeze 6000)
Step 3: Compute the equivalent unit cost
(Magkano ang value ng bawat isang production)

Step 4: Compute the cost of goods manufactured

(Magkano ang value ng goods na naproduced)

Step 5: Compute the cost of ending work in process

Weighted average EUP

Just like in FIFO compute first the ending work in process expressed in units
*Di na kailangan paghiwalayin yung units started and compeleted and continued and
completed
*Lahat ng completed sama sama na

Sa weighted iaassume na walang beginning inventory (yung nastart in the previous

period tsaka inistart ngayon, it will be assumed na lahat inistart ngayon
*Completed multiplied by 100%
*sa completed kasama na yung beginning kasi yung continued yun yung beginning
*Ending multiplied by the percentage completed
Transferred in magsisilbing started niya
105000 = nakuha sa squeeze
*not 80% kasi eup ng materials kinocompute , 80% is for the conversion

*If materials added to the start= 100% as to material

(Simula palang completed na yung materials)
* If materials added at the end= 0% as to material

ANS. 105 ,000 for material