Example (55%)

1- physical flow & equivalent units

* units to be accounted for
Beg. WIP 1,500
Started 8,500
Total 10,000
* units accounted for Material conversion
Good units completed & transferred out 7,000 7,000 7,000
Normal spoilage 550 550 302.5
Abnormal spoilage 450 450 247.5
End. WIP 2,000 2,000 1,000
Total 10,000 10,000 8,550

2- Total cost to be acounted for & cost per equivalent units

Material Conversion Total
Cost at the beginning $ 12,000 $ 9,000 $ 21,000
costs incurred $ 76,500 $ 89,100 $ 165,600
Total $ 88,500 $ 98,100 $ 186,600
Equivalent units 10,000 8,550
Cost per equivalent unit $ 8.85 $ 11.47 $ 20.32

3- cost reconciliation schedule

Assignment of costs:
Total Material Conversion
Good units completed & transferred out $ 142,265.79 $ 61,950.00 $ 80,315.79
Normal spoilage $ 8,338.29 $ 4,867.50 $ 3,470.79
Abnormal spoilage $ 6,822.24 $ 3,982.50 $ 2,839.74
End. WIP $ 29,173.68 $ 17,700.00 $ 11,473.68
Total $ 186,600 $ 88,500 $ 98,100