5 6 Process Costing. Weighted Average Method 7 8 Work In Process 10/1. 16,000 units 9 10 11 Direct Material: 100% complete Conversion Cost 10% complete Balance WIP 10/1 $ $ $ 54,560 35,560 90, 120 12 13 14 Units Started during October 100,000 units 15 16 Units Completed & Transferred Out during Oct. FORMULA units 17 18 19 20 $ 588,000 21 Cost Incurred During October Direct Material Conversion Costs: DL Overhead Costs 22 23 $ $ $ 500,000 74,040 574,040 24 Total conversion costs 25 25 Work In Process Units, 10/31 Direct Material 27 24,000 units 100% complete 40% complete 28 Conversion 29 30 31 1. Determine the physical flow of goods 2. Determine the equivalent units for material and conversion 3. Determine the price per equivalent unit for material and conversion 4. Determine the cost of goods completed and transferred out and the cost in ending WIP. 32 33 34 35 Remember: Insert a number in cells with the word "NUMBER. I FORMULA appears in the cell and in the window below the toolbar then you must input the formula. 36 37 38 29 Step 1. Physical Flowof Units 40 41 42 Beginning WIP Plus: Units Started 43 18.000 100.000 118.000 44 Total Units to Account For 45 FORMULA 46 Units Completed & Trans Out Ending WIP Total Units Accounted For 47 FORMULA #VALUE! 48 49 50 51 52 Step 2. Calculation of Equivalent Units 53 %of Complete Direct Material Conversion Equivalent Units DM Conversion 54 55 888 S8s & a&&&&&8*9*985 * 4* #83 * $*** SESEBENE 100% 100% FORMULA FORMULA 56 Units Completed & Trans Out Ending WIP Total Units Accounted For 100% FORMULA #VALUE! #VALUE! FORMULA FORMULA 58 39 60 67 Step 3 - Computation of Unit Costs 52 63 Total 90.120 54 65 Direct Material Conversion $ 54,500 $ 35.580 $ FORMULA $ 574040 #VALUE! FORMULA FORMULA FORMULA Beginning WIP Plus: Cost Incurred Total Costs to Account For Equivalent Units 68 Cost/Equiv Unit #VALUE! 66 #VALUE! 67 FORMULA FORMULA FORMULA 59 70 71 Step 4. Analysis of Total Cost 72 73 Cost of Goods Completed & Transferred Out 74 Direct Material Conversion Total 75 FORMULA 76 Number of Units Trans Out Cost/Equiv Units Total FORMULA FORMULA #VALUE! FORMULA FORMULA FORMULA 78 79 80 81 Ending Work-In-Process 10/31 82 Direct Material Conversion Total 83 FORMULA FORMULA 84 Number of Equiv Units Cost/Equiv Units 85 Total WIP 10/31 FORMULA FORMULA #VALUE! #VALUE! FORMULA 86 87 Total costs accounted for FORMULA 89 90 91 92