Process Costing
:))) .....(!) 

  PROBLEM

	(In $)
Units
Beginning work in process  : 6000 units , 80 %  completed for materials
50% completed for conversion costs
Started during month : 30.000 units
Completed during month : 33.000 units
Ending work in process : 3000 units : 100 % completed for materials
60 % for conversion costs
Costs
Beginning work in process
Direct Materials	8500
Conversion costs	1500	10000
Direct materials added in current month		42000
Conversion costs added in current month		15000
Total costs to account for		67000

SOLUTION TO PROBLEM

How of Production		(Step 2)
	(Step 1)	Equivalent Units
	Physical Units	Material	Conversion Costs
Completed and transferred out	33000	33000	33000
Ending work in process	3000	3000	1800
1. Equivalent units , WA	36000	36000	34800
Less : beginning work in process	6000	4800	3000
2. Equivalent units, FIFO	42000	40800	37800

Weighted- Average Method	Total Cost	Direct Materials	Conversion Costs
Beginning work in process	10000	8500	1500
Costs added currently	57000	42000	15000
Total costs to account for	67000	50500	16500
Equivalent units, weighted-average		: 36000	: 34800
Units cost, weighted-average	1,877	1,403	0,474
Transferred out, 33000 x 1,877	61940
Ending work in process
Direct materials	4209	(1,403) 3000
Conversion cost	851		(0,474) 1800
Total work in process	5060
Total cost accounted for	67000

FIFO Method	Total Cost	Direct Materials	Conversion Costs
Beginning work in process	10000	(work done before month)
Costs added currently	57000	42000	15000
Total costs to account for	67000
Equivalent units, FIFO		: 30000	: 33000
Units cost, weighted-average	1,856	1,4	0,456
Ending work in process
Direct materials	4200	(1,4) 3000
Conversion cost	822		(0,456) 1800
Total work in process	5022
Transferred out, 67000 - 5022	61978
Total cost accounted for	67000

Check :

Beginning work in process                                           10000

Costs to completed, 50 % x 6000 x 0,456                      1422

Started and completed,

            (33000 - 6000) (1,4  + 0,456)                          50122

            Total cost transferred                                       61544

Unit cost transferred, 61544 : 33000 = 1,8646