Acct 202 Process Costing Problem Steps

Information Given

	Units	Percent Completed
		Materials	Conversion
Work in process, beginning	120,000	55%	50%
Started into production	192,000
Completed and transferred out	182,000
Work in process, ending	130,000	60%	40%

 

	Materials	Conversion
Work in process, beginning	$ 13,500	$ 3,900
Cost added during June	$ 145,100	$ 82,680

Equivalent Units of Production

Materials Conversion

Completed and Transferred Out 182,000 182,000

(+) Work in Process, Ending (%) 78,000 52,000

Equivalent Units of Production 260,000 234,000

Cost Per Equivalent Unit

Materials Conversion

Cost of Work in Process, Beg. $13,500 $3,900

(+) Cost Added During June $145,100 $82,680

Total Cost $158,600 $86,580

Divide Cost by Equiv. Units 260,000 234,000

Cost Per Equivalent Units $0.61 $0.37

Cost of Ending Work in Process

Materials Conversion

Equivalent Units (WIP Ending) 78,000 52,000

Multiply by Cost Per Equiv. Unit $0.61 $0.37

Cost of Ending Work in Process In. 47,580 19,240

Cost of Units Transferred Out

Materials Conversion

Units Transferred Out 182,000 182,000

Multiply by Cost Per Equiv. Unit $0.61 $0.37

Cost of Units Comp. and Trans. Out 111,020 67,340