Units Dept 1

WIP beg. (80% complete as to conversion) 5,000

Started in Process 80,000

WIP end (70% complete as to conversion 4,000

Finished & Transferred 70,000
Normal lost units 6,000
Abnormal lost units ?

Last period Cost Last period Cost

Materials 20,000
Conversion 40,000
Transferred in -

Current Period Cost Current Period Cost

Materials 150,000
Conversion 252,160
Transferred in -

DEPT 1
WIP beg 5,000
Started in process 80,000
Total units to be accounted for 85,000

FIFO Actual WD
WIP beg 5,000.00 0%
Started in process, Finished & Transferred 65,000.00 100%
WIP end 4,000.00 100%
Normal Lost 6,000.00 100%
Abnormal lost 5,000.00 100%
Total units to be accounted for 85,000.00

Cost Schedule
WIP beg
Materials 20,000.00
Conversion Cost 40,000.00
Total 60,000.00
Cost added this month Divide: EUP
Materials 150,000.00 80,000.00
Conversion Cost 252,160.00 79,800.00
Total Cost 462,160.00
Cost accounted for Materials CC
WIP beg. Finished and transferred - 3,159.90
Started in Process finished and transferred 121,875.00 205,393.48
Normal lost 11,250.00 18,959.40
Total transferred out
WIP end 7,500.00 8,847.72
Abnormal lost 9,375.00 15,799.50
Total cost 150,000.00 252,160.00
 Dept 2

WIP beg. (80% complete as to

conversion) 6,000
Started in Process ?
WIP end (70% complete as to
conversion ?
Finished & Transferred 65,000
Normal lost units 2,000
Abnormal lost units 1,200

Materials 25,000
Conversion 35,000
Transferred in 25,000

Materials 150,000
Conversion 400,000
Transferred in ?

Material WD Conversion
- 20% 1,000.00
65,000.00 100% 65,000.00
4,000.00 70% 2,800.00
6,000.00 100% 6,000.00
5,000.00 100% 5,000.00
80,000.00 79,800.00

Unit Cost
1.87500
3.15990
5.03490
Cost last month Total
60,000.00 63,159.90
327,268.48
30,209.40
420,637.78 transferred out
16,347.72 WIP end
25,174.50
60,000.00 462,160.00
 Units Dept 1

WIP beg. (80% complete as to conversion) 5,000

Started in Process 80,000

WIP end (70% complete as to conversion 4,000

Finished & Transferred 70,000
Normal lost units 6,000
Abnormal lost units ?

Last period Cost Last period Cost

Materials 20,000
Conversion 40,000
Transferred in -

Current Period Cost Current Period Cost

Materials 150,000
Conversion 252,160
Transferred in -

DEPT 2
WIP beg 6,000
Started in process 70,000.00
Total units to be accounted for 76,000

FIFO Actual WD
WIP beg 6,000.00 70%
Started in process, Finished & Transferred 59,000.00 100%
WIP end 7,800.00 100%
Normal Lost 2,000.00
Abnormal lost 1,200.00
Total units to be accounted for 76,000.00

Cost Schedule
WIP beg
Materials 25,000.00
Conversion Cost 35,000.00
Transferred in 25,000.00
Total 85,000.00
Cost added this month Divide: EUP
Materials 150,000.00 71,000.00
Conversion Cost 400,000.00 67,580.00
 Transferred in 420,637.78 70,000.00
Total Cost 1,055,637.78

Cost accounted for Materials CC

WIP beg. Finished and transferred 8,873.2394366 7,102.6931045
Started in Process finished and transferred 124,647.8873239 349,215.7443030
Normal lost - 7,102.6931045
Total transferred out
WIP end 16,478.8732394 32,317.2536253
Abnormal lost - 4,261.6158627
Total cost 150,000.00 400,000.00
 Dept 2

WIP beg. (80% complete as to

conversion) 6,000
Started in Process 70,000 6,000
WIP end (70% complete as to
conversion ?
Finished & Transferred 65,000 (59,000)
Normal lost units 2,000
Abnormal lost units 1,200

Materials 25,000
Conversion 35,000
Transferred in 25,000

Materials 150,000
Conversion 400,000
Transferred in ?

Material WD Conversion
4,200.00 20% 1,200.00
59,000.00 100% 59,000.00
7,800.00 70% 5,460.00
- 60% 1,200.00
- 60% 720.00
71,000.00 67,580.00

Unit Cost
2.11267605634
5.91891092039
 6.00911117078
14.04069814751

Cost last month CFPD Total

85,000.0000000 100,975.93254
354,537.5590763 828,401.19070
12,018.2223416 19,120.91545
948,498.03869 transferred out
46,871.0671321 95,667.19400 WIP end
7,210.9334049 11,472.54927
85,000.00 420,637.78 1,055,637.78195
65,000
nsferred out
 Units started 175,000
Beg WIP (65% to be done) 35,000
Total spoilage 14,875
Spoilage within tolerance level 6,125
Ending work in process (20% incomplete) 25,375
Transferred out 184,625

Beginning WIP Costs

Material 46,250
Conversion 60,675

Current Costs
Material 170,625
Conversion 265,335

Quantity Schedule
WIP beginning 35,000
Started in Process 175,000
Total units to be accounted for 210,000
Less: Beginning (35,000)
Total spoilage (14,875)
WIP end (25,375)
Units transferred and completed 134,750

Actual WD
WIP beginning Finished & Transferred 35,000 0%
Started in process Finished & Transferred 134,750 100%
WIP end 25,375 100%
Normal Lost 6,125 100%
Abnormal Lost 8,750 100%
Total units accounted for 210,000

Cost Schedule
WIP beginning cost
Materials 46,250
Conversion Cost 60,675
Total 106,925

Cost added this month

Materials 170,625 / 175,000
Conversion Cost 265,335 / 182,175
Total Costs 542,885
Cost accounted for Materials CC
WIP beg. Finished and transferred - 31,329.29155
Started in Process finished and transferred 131,381.25000 185,565.80381
Normal lost 5,971.87500 8,434.80926
Total cost of goods finished and transferred out
WIP end 24,740.62500 27,955.36785
Abnormal lost 8,531.25000 20,580.97752
Total cost 170,625.00000 273,866.25000
 35,000
175,000 184,625 transferred
25,375

Materials WD CC
- 65% 22,750
134,750 100% 134,750
25,375 80% 20,300
6,125 100% 6,125
8,750 100% 8,750
175,000 192,675 EUP for CC

Unit Cost
0.97500
1.37711
2.35211
Cost last month Total
106,925.00000 138,254.29155
- 316,947.05381
- 14,406.68426
469,608.02963 total cost of transferred units
- 52,695.99285 WIP end
- 29,112.22752
106,925.00000 551,416.25000
Product Split off per unit Units produceWeight factors
A 36.00 20,000.00 9.00
B 10.50 32,000.00 16.50
C 18.00 36,000.00 15.00
D 16.50 24,000.00 18.00

AVERAGE UNIT METHOD

Average Joint Cost
Product Units produced
Unit Cost Allocation
A 20,000.00 6.00 120,000.00
B 32,000.00 6.00 192,000.00
C 36,000.00 6.00 216,000.00
D 24,000.00 6.00 144,000.00
Total 112,000.00 672,000.00

Average unit cost = 672,000/112,000

6.00

MARKET VALUE METHOD

Split off per Total Market Weighting market Joint Cost
Product Units produced unit Value value (A) Allocation
A 20,000.00 36.00 720,000.00 0.34 230,400.00
B 32,000.00 10.50 336,000.00 0.16 107,520.00
C 36,000.00 18.00 648,000.00 0.31 207,360.00
D 24,000.00 16.50 396,000.00 0.19 126,720.00
Total 112,000.00 2,100,000.00 672,000.00

WEIGHTED AVERAGE METHOD

Weight per Joint Cost
Units produced Weighted Units Average Unit Cost
Product unit Allocation
A 20,000.00 9.00 180,000.00 0.40 72,000.00
B 32,000.00 16.50 528,000.00 0.40 211,200.00
C 36,000.00 15.00 540,000.00 0.40 216,000.00
D 24,000.00 18.00 432,000.00 0.40 172,800.00
Total 112,000.00 1,680,000.00 672,000.00

Weighted Average Unit Cost = 672,000/1,680,000

0.40
 by-product A
Total sales (5,000 x 6) 30,000
Less: Further processing cost (5,000 x 1) (5,000)
Less: Disposal cost per unit (5,000 x 2) (10,000)
Less: Desired profit per unit (5,000 x 1) (5,000) (20,000)
Share in Joint Cost 10,000

Total Joint Cost 860,000

Less: Share of by-product X (10,000)
Total Joint Cost to be allocated to Main Products 850,000

PRODUCTS Units produced SV per unit

X 25,000 50
Y 20,000 40
FPC NRV per unit Total NRV Net Income
10 40 1,000,000 3/5 500,000.00
5 35 700,000 2/5 350,000.00
1,700,000 850,000.00