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Process Costing

4. Chapter. Process Costing. WIP. FG. Splitting the total cost between WIP and FG. Beginning WIP. Current Work. Units Completed. Ending WIP. +. =. +. ?. Units. $ / Unit. Total $. Beg WIP. Current. Total. Completed. End WIP. Total. Process Costing Example.

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Process Costing

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  1. 4 Chapter Process Costing WIP FG • Splitting the total cost between WIP and FG.

  2. Beginning WIP Current Work Units Completed Ending WIP + = + ?

  3. Units $ / Unit Total $ Beg WIP Current Total Completed End WIP Total

  4. Process Costing Example Textbook Example Units DM Conversion Beg WIP 200 $ 9,600 $ 5,575 Current period 5,000 368,600 350,900 Completed 4,800 ? ? End WIP 400 ? ?

  5. 1. Determine current period units by working backwards. Physical Units DM Conv Completed End WIP(DM 40%, Conv 25%) Beg WIP (DM 55%, Conv 30%) Current Material for 4,850 units added during the period. Enough labor and overhead for 4,840 units.

  6. 2. Determine per-unit costs. DM Conversion Total Units $/unit Total $ Units $/unit Total $ Costs Beg WIP 110 60 Current 4,850 4,840 Total 4,960 4,900 3. Assign costs to completed and end inventory. Assignmnt Complete End WIP Total

  7. DM Conversion Total Units $/unit Total $ Units $/unit Total $ Costs Beg WIP 110 $ 9,600 60 $ 5,575 $ 15,175 Current 4,850 368,600 4,840 350,900 719,500 Total 4,960 $378,200 4,900 $356,475 $734,675 FIFO Assignmnt Complete Beg WIP Completed Current Total End WIP Total

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