Step One: Determine the units to be asssigned costs. | |||||||||
Step Two: Calculate equivalent units of production | |||||||||
Step Three: Determine the cost per unit | |||||||||
Step Four: Allocate costs to transferred and partially completed units |
Production report of Assembly: | |||||
Whole units | DM | Conversion | Total | ||
Step 1 | Units to be assigned costs & cost to account for: | ||||
Opening WIP | 800 | 228000 | |||
Started during April | 3000 | 1157000 | |||
Total units to account | 3800 | 1385000 | |||
Step 2 | Equivalent units: | ||||
Opening WIP | 800 | 0 | 200 (25%) | ||
Started and completed | 2700 | 2700 | 2700 | ||
Transferred out | 3500 | ||||
Closing WIP | 300 | 300 | 200 (67%) | ||
Equivalent units: | 3000 | 3100 | |||
Step 3 | Cost per equivalent unit: | ||||
Cost incurred in April | 630000 | 527000 | |||
cost per equivalent unit | 210 | 170 | |||
Step 4 | Cost of Transferred out and Closing WIP (partial): | ||||
Op WIP | 228000 | ||||
Cost completed in april | 0 | 34000 | 34000 | ||
Total cost of Op WIP | 262000 | ||||
Started & Completed | 567000 | 459000 | 1026000 | ||
Cost of Transferred out | 1288000 | ||||
Cost of Cl WIP | 63000 | 34000 | 97000 | ||
Total cost accounted for | 1385000 |
Step One: Determine the units to be asssigned costs. Step Two: Calculate equivalent units of production...
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