Step 1 & 2

A B C D E
Flow of production Physical unity Equivalent units
Direct materials Conversion cost
Step 1 Working in process 5000
beginning
Started during current 20000
period
To account for 25000
Step 2 Completed and transferred
out during current period
From beginning work in 5000
process
500x (100%-100%);5000x 0 2000
(100%-60%)
Started and completed 17500
(17,500 x 100%: 17,500 x 17500 17500
100%)
Working process ending 2500
(2500 x 100%: 2500 x 70%) 2500 1750
Account for 25000
Work done in current period 20000 19290

A B C D E
Total Direct materials Conversion cost
production
costs
Step 3 Work in process beginning $1,692,750 $1,290,000 $402750
Cost added in current period 6,837,500 4,500,000 2,337,500
Total cost to account for 8,490,290 5,750,000 ÷ 2,740,250 ÷

Step 4 Cost incurred to date 4,500,000 2,337,500

Divided by equivalent units 20,000 19,250
of work in current period
Cost per equivalent work in $225 $110
current period

Step 5 Assignment costs

Completed and transferred
out (22,500) units
Work in process beginning 1,652,750 1,250,000 + 402,750
 Cost added to beginning in 2,200,00 (0 x $229) + (2000 x $
process in current period 110)
Total from beginning 1,872,750
inventory
Started and completed 5,862,500 (17500 x $229) + (17,500 x
(17,500) units $110)
Total cost of unit C & T out 7,739,250
Work in process ending 75,5000 (2500 x $ 225) + (17,500 x
$110)
Total cost accounted for $8,490,250 5,750,000 $2,740,290

First - in, first out

Process - costing method

Step 1 & 2
A B C D E
Flow of production Physical unity Equivalent units
Direct materials Conversion cost
Step 1 Working in process 5000
beginning
Started during current 20000
period
To account for 25000
Step 2 Completed and transferred 22500 22500 22,500
out during current period
work in process ending 2500
(2500 x 100%: 2500 x 75%) 2500 1750
Account for 25000
Account done to date 25000 24,250
Degree of completion in this department; direct materials, 100%; conversion cost,
50%
Step 3, 4 & 5
A B C D E
Total Direct materials Conversion cost
production
costs
Step 3 Work in process beginning $1,692,750 $1,290,000 $402750
Cost added in current period 6,837,500 4,500,000 2,337,500
Total cost to account for 8,490,290 5,750,000 ÷ 2,740,250 ÷

Step 4 Cost incurred to date $57500,00 ÷ $2,740,250 ÷

Divided by equivalent units 25000 24,250
of work in current period
Cost per equivalent work in $230 $113
current period
Step 5 Assignment costs
Completed and transferred 7,717,500 (2,2500 x $230) + (22500 x
out (22,500) units $113)
Work in process ending 7,727,50 (22,500 x $230) + (1750 x $113)
Total cost account for 8,490,205 5,785,0000 + 2,740,250

Equivalent unit completed and transferred out from step 2

Equivalent unit ending work in process step 2
Weighted – average
Process – costing method
 Step 1 & 2 (WA method)
A B C D E
Flow of production Physical unity Equivalent units
Direct materials Conversion cost
Step 1 Working in process 3000
beginning
Started during current 29000
period
To account for 28000
Step 2 Good unit completed and 20900 20500 20500
transferred out during
current period
normal spoilage 2050
(2050 x 100%; 2050x 2090 2050
100%)
Abnormal spoilage
1250 x 100% ; 1250 x 100% 1290 1250
Working process ending 4200
(4200 x 100%: 4200 x 30%) 4200 1260
Account for 28000
Work done in to date 28000 29060

Normal spoilage is 10% of good unit transferred out; 10% x 20500 = 2050 units
Degree of completion of normal spoilage in this department; conversion cost; 100%
Abnormal spoilage = total spoilage – normal spoilage = 3300 – 2090=1250 units
Degree of completion of abnormal spoilage in this departments
DM: 100%, CC 100%
Degree of completion in this departments DM: 100%, CC 100%

A B C D E
Total Direct materials Conversion cost
production
costs
Step 3 Work in process beginning 7200 4500 2700
Cost added in current period 83466 46250 37216
Total cost to account for 90666 50750 39,916

Step 4 Cost incurred to date 50750 ÷ 39,916÷

Divided by equivalent units $28000 25,060
of work done to date
 Cost per equivalent unit $18,125 $15,928
Step 5 Assignment costs
Good units completed and
transferred out (20,500)
units
Costs before adding normal 69.808,65 (20,500 x + (20500 x
spoilage $1.8125) $1.5928)
Normal spoilage (2050) 6980.865 (20,500 x + (20500 x
units $1.8125) $1.5928)
Total cost of good units C &
T out
Abnormal spoilage (1250 4189625 (1250 x $1.8125) + (1250 x
units) $1.9928)
Work in process ending 9619428 (4200 x $1.8125) + (1260 x
(4200 units) $1.9928)
Total cost accounted for 90.665,568 ≈ 50750 39.915,568 ≈
90.666 39.916

Equivalent unit of direct materials and conversion cost calculation is step 2

Step 1 & 2 (WA method)

A B C D E
Flow of production Physical unity Equivalent units
Direct materials Conversion cost
Step 1 Working in process 3000
beginning
Started during current 29000
period
To account for 28000
Step 2 Good unit completed and 20900 20500 20500
transferred out during
current period
From beginning work in 3000
process
(3000 x (100% - 0 1200
100%):(3000 x (100% -
60%);
Started and completed 17500
(17500 x 100% : 17500 x 17500 17500
100%)
Normal spoilage 2090
(2050 x 100%: 2050 x 2050 2050
100%)
Abnormal spoilage 1250
 (1250 x 100%: 1250 x 1250 1250
100%)
Working process ending 4200
(4200 x 100%: 4200 x 30%) 4200 1260
Account for 28000
Work done in current period 25000 23,260

Step 3, 4 & 5
A B C D E
Total Direct materials Conversion cost
production
costs
Step 3 Work in process beginning 7200 $4500 2700
Cost added in current 83466 46,250 37.216
period
Total cost to account for 90666 50750 39.916

Step 4 Cost added in current $46290 ÷ 37216 ÷

period
Divided by equivalent units 25000 23260
of work in current period
Cost per equivalent unit $1.85 $1.6
Step 5 Assignment costs
Good unit of C & T out
(20,500) units
Work in process beginning 7200 4500 + 2700
(3000 unit)
Cost added to beginning 1920 (0 x 1.85) + (1200 x 1.6)
inventory before normal
spoilage
Total from beginning 9120 (17500 x 1.85) + (17,500 x 1.6)
inventory normal spoilage
S & C before normal 60375 + (2050 x 1.6)
spoilage (17500 unit)
Normal spoilage (2050 7073 (2050 x 1.85)
units)
(A) Total cost of good unit C & 76568
T out
(B) Abnormal spoilage (1250 4312 (1250 x 1.85) +(1250 x 1.6)
unit)
(C) Work in process 9.786 (4200 x 1.85) +(1260 x 1.6)
ending(4200 unit)
(A)+(B)+(C) Total cost account for 90.666 50750 39,916

Step 3, 4 & 5(FIFO Method)

 32375
37925 …….

A B C D E F
Flow of production Physical Transferred Equivalent units
unity cost
Direct Conversion
materials cost
Step 1 Working in process 10,500
beginning
Started during current 20,500
period
To account for 31,000
Step 2 Good unit C & T out
during current period

From beginning work in 10500

process
(10500 x (100% - 100%) 0 10500 3150
:(10500 x (100% - 0%);
%) :(10500 x (100% -
70%);
Started and completed 11500
(11500 x 100%: 11500 x 11500 11500 11500
100%: 11500 x 100%)
Normal spoilage 1760
(17600 x 100%: 17600 x 1760 1760 1760
100%:17600 x 100%:)
Abnormal spoilage 240
(240 x 100%: 240 x 240 240 240
100%:240 x 100%:)
Work in process ending 7000
(7000 x 100%: 7000 x 7000 0 2800
0%:7000 x 40%:)
Accounted for 31000
Equivalent unit of work 205000 24000 19450
done in current period

Step 1 & 2 (FIFO Method)

A B C D E F
Total Transaction DM CC
production costs
costs
Step 3 Work in process beginning 54,160 39,460 0 14,700
Cost added in current period 120,490 76,790 4800 38,900
Total cost to account for 174,690 116,250 4800 53,600
Step 4 Cost incurred to date 76,790 4800 ÷ 38,900
Divided by equivalent units ÷20,500 24,000 19,950
of work in current period
Cost per equivalent work in $3.705 $0.02 $2.00
current period
Step 5 Assignment costs
Good units C & T
out(22,000units)
Work in process 54,160 39,460 0 14,700
beginning(10,500units) + +
Costs added to beginning in 18,400 (0 ×3.735) + (10,500 × (3,150 ×
process in current period 0.02) 2)
Total from beginning 62,560
inventory before normal
spoilage
S and C before normal 68,253 (11,500 (11,500 (11,500
spoilage(11,500units) ×3,735) + ×0.02) + ×2)
Normal spoilage 10,446 (1760 (1760 (1760
(1760units) × 3,735) + × 0.02) + × 2)
Total costs of good units 141,259
C&T out
Abnormal 1424 (240 (240 (240 × 2)
spoilage(240units) ×3,735) + ×0.02) +
Working process 31,745 (7000 (0 (2,800 ×
ending(7000units) ×3,735) + ×0.02) 2)
+
Total costs accounted for 174,650 116,250 4800 53,600
+ +
A B C D E
Flow of production Physical unity Equivalent units
Transferred DM CC
cost
Step 1 Working in process beginning 19,500
Started during current period 20,500
To account for 31,000
Step 2 Good units C &T during current 22,000 22,000 22,000 22,000
period
Normal spoilage 1,760
(1760 ÷1760×100 1,760 1,760 1,760
÷1760×100%)
Abnormal spoilage 240
240×100% : 240×100% : 240 240 240
240×100%)
Working process ending 7000
7000×100% : 7000×0% : 7000 0 28,000
7000×40%
Accounted for 31,000
Equivalent unit of work done to 31,000 24,000 26,800
date

A B C D E F
Total Transaction DM CC
production costs
costs
Step 3 Work in process beginning 54,160 39,460 0 14,700
Cost added in current period 120,490 76,790 4800 38,900
Total cost to account for 174,690 116,250 4800 53,600
Step 4 Cost incurred to date 116,250 4800 53,600
Divided by equivalent units ÷21,00 ÷ 24,000 ÷ 26,800
of work done to date
Cost per equivalent unit $3.75 $0.02 $2.00
Step 5 Assignment costs
Good units C & T
out(22,000units)
Cost before adding normal 130,900 22000 x + 2200 x + 22000 x
spoilage 3.75 0.20 2.00
Normal spoilage (1750 10.472 1760 x 3.75 + 1760 x + 1760 x
units) 0.20 2.00
Total cost of good unit C & 141.372
T out
Abnormal spoilage (240 1,428 240 x 3.75 + 240 x + 240 x
units) 0.20 2.00
Work in process ending 31,850 7000 x 3.75 +0x + 2800 x
(7000 units) 0.20 2.00
Total costs accounted for 174,650 116,250 4800 53600