1. Formulas

Total units to account for

beginning work in process inventory + units started this period

Total units accounted for

Units completed and transferred out + units in ending work in process inventory

Ending work in process inventory

Beginning work in process inventory + Units started this period - Units completed and transferred

Conversion cost

Direct labor + applied overhead.

Equivalent units of production

units x percent complete

• We separately compute equivalent units of production for direct materials and conversion costs.

• This is used to calculate equivalent units of production for ending work in process and completed and transferred out units.

Total Equivalent units of production or EUP (weighted average method)

Equivalent units of production completed and transferred out + Equivalent units of production in ending work in process (separate numbers calculated for direct materials and conversion)

Total costs (for step 3 when calculating cost per EUP)

Costs of beginning work in process + Costs added this period.

• Two numbers are calculated, one for direct materials and one for conversion

Cost per equivalent unit of production

(Costs of beginning work in process + Costs added this period) / Equivalent units of production (from step 2)

Cost per equivalent unit of production (simplified)

Total costs (step 3)/ Equivalent units of production (from step 2)

Total cost (cost assignment, step 4)

EUP (step 2) x Cost per EUP (step 3)

Cost of goods available for sale

Beginning finished goods inventory + Cost of goods manufactured

Cost of goods sold

Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Raw materials inventory amount

Beginning raw materials inventory + Raw materials purchased - Materials requisitioned

Work in process inventory amount

Work in Process inventory from all departments added together

Cost per completed unit

Cost of goods manufactured this period / Number of units transferred to finished goods

Yield

Nondefective units produced / Units that could have been produced