Post on 02-Feb-2018
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-1
Process Costing
Student Tutorial
7
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-2
Process Costing System Design
Process Costing is a costing system thatassigns costs equally to homogeneous units
within a particular time period.
This is an appropriate system to usewhen:•Units do not differ from each other.
•Unit cycle time is relatively short.
•The production process is continuous.
This is an appropriate system to usewhen:•Units do not differ from each other.
•Unit cycle time is relatively short.
•The production process is continuous.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-3
Process Costing at Monterrey BayAbalone
Human andphysical
resources
Human andphysical
resources
Cultivation processactivities
Cultivation processactivities
Grow-out processactivities
Grow-out processactivities
Market-size abaloneMarket-size abalone
Finished Goods InventoryFinished Goods Inventory
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7-4
Process Costing: The Basics
Costs will be accumulated by process. They willnot be traced to individual units of product.
Costs will be accumulated by process. They willnot be traced to individual units of product.
Direct MaterialsDirect Materials Conversion CostsConversion Costs
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7-5
Process Costing: The Basics
Costs will be accumulated by process. They willnot be traced to individual units of product.
Costs will be accumulated by process. They willnot be traced to individual units of product.
Raw material directlytraceable to the
process.
Raw material directlytraceable to the
process.
Direct MaterialsDirect Materials Conversion CostsConversion Costs
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7-6
Process Costing: The Basics
Costs will be accumulated by process. They willnot be traced to individual units of product.
Costs will be accumulated by process. They willnot be traced to individual units of product.
labour and overheaddirectly traceable to the
process.
labour and overheaddirectly traceable to the
process.
Direct MaterialsDirect Materials Conversion CostsConversion Costs
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7-7
Process Costing: The Basics
DirectMaterials (DM)
DirectMaterials (DM)
ConversionCosts (CC)
ConversionCosts (CC)
+
Total Cost per Unit
CC $
÷Units
Produced =
CC Cost per Unit
DM $
÷Units
Produced =
DM Cost per Unit
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-8
Process Costing: The Basics
!Determine total Direct Material costs
"Compute DM Cost per Unit
#Determine total Conversion Costs
$Compute CC Cost per Unit
%Add Steps 2 and 4 to get Total Costper Unit
&COGS = Step 5 × Units Sold
'Ending Inventory = Step 5 × Units NotSold
!Determine total Direct Material costs
"Compute DM Cost per Unit
#Determine total Conversion Costs
$Compute CC Cost per Unit
%Add Steps 2 and 4 to get Total Costper Unit
&COGS = Step 5 × Units Sold
'Ending Inventory = Step 5 × Units NotSold
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-9
Example 1: All Units FullyCompleted (No WIP)
Clark, Inc. is a new company that makes shinglesfrom storm-damaged cedar trees. The product
sells at a premium and is in high demand.
During June, they purchased 90,000 board feetcedar costing $350,000. They spent $105,000 on
labour. Clark, Inc. incurred other processoverhead (insurance, rent, benefits, etc.) of$280,000. The result was 1,000,000 shingles
produced. There were no units in beginning orending WIP.
Compute the cost per shingle produced.
Clark, Inc. is a new company that makes shinglesfrom storm-damaged cedar trees. The product
sells at a premium and is in high demand.
During June, they purchased 90,000 board feetcedar costing $350,000. They spent $105,000 on
labour. Clark, Inc. incurred other processoverhead (insurance, rent, benefits, etc.) of$280,000. The result was 1,000,000 shingles
produced. There were no units in beginning orending WIP.
Compute the cost per shingle produced.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-10
Example 1: All Units FullyCompleted (No WIP)
DirectMaterials (DM)
DirectMaterials (DM)
ConversionCosts (CC)
ConversionCosts (CC)
+
Total Cost Per Unit $0.455
$350,000 ÷ 1,000,000 = $0.350
$105,000 ÷ 1,000,000 = $0.105
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7-11
Some Units Not Fully Complete(Ending WIP)
In many cases,there will be
some units at theend of the month
still in theprocess.
In many cases,there will be
some units at theend of the month
still in theprocess.
With a continuousprocess, it would beunrealistic to expect
every unit to be completeat the end of each month
With a continuousprocess, it would beunrealistic to expect
every unit to be completeat the end of each month
We must compute EQUIVALENT UNITS ofProduction for the items still in Ending WIP.
We must compute EQUIVALENT UNITS ofProduction for the items still in Ending WIP.
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7-12
Some Units Not Fully Complete(Ending WIP)
We must compute EQUIVALENT UNITS ofProduction for the items still in Ending WIP.
We must compute EQUIVALENT UNITS ofProduction for the items still in Ending WIP.
Equivalent Units representthe amount of work
actually accomplished,expressed as the numberof units that could havebeen fully completed.
+
½
½
1
+
=
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7-13
Some Units Not Fully Complete(Ending WIP)
# of Partially Completed Units
× % Completion =Equivalent Units in Ending WIP
We have to compute EQUIVALENT UNITS inEnding WIP for both Direct Materials and for
Conversion Costs.
We have to compute EQUIVALENT UNITS inEnding WIP for both Direct Materials and for
Conversion Costs.
For example, four quarters is equivalentto one dollar.
For example, four quarters is equivalentto one dollar.
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7-14
Some Units Not Fully Complete(Ending WIP)
# of Partially Completed Units
× % Completion =Equivalent Units in Ending WIP
Total EQUIVALENT UNITS = EU in Ending WIP +Units Completed and Transferred to Finished
Goods.
Total EQUIVALENT UNITS = EU in Ending WIP +Units Completed and Transferred to Finished
Goods.
Equivalent Units in Ending WIP
+
Units Completed & Transferred
Out
=Total Equivalent
Units
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7-15
Some Units Not Fully Complete(Ending WIP)
!Summarize the flow of physicalunits.
"Compute the number ofequivalent units.
#Summarize the total costs toaccount for (for both DM and CC)
$Compute costs per equivalentunit.
%Assign costs to COGS and toending WIP.
!Summarize the flow of physicalunits.
"Compute the number ofequivalent units.
#Summarize the total costs toaccount for (for both DM and CC)
$Compute costs per equivalentunit.
%Assign costs to COGS and toending WIP.
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7-16
In its first month, Clark, Inc. purchased 90,000 boardfeet of cedar for $350,000. They spent $105,000 on
labour and had other process overhead of $280,000.
Clark started 1,200,000 shingles in July, completed1,000,000 shingles and sold 900,000 shingles.
The ending WIP was 80% complete with respect tomaterial, but only 30% of the conversion work has
been done.
Compute the cost per shingle produced.
In its first month, Clark, Inc. purchased 90,000 boardfeet of cedar for $350,000. They spent $105,000 on
labour and had other process overhead of $280,000.
Clark started 1,200,000 shingles in July, completed1,000,000 shingles and sold 900,000 shingles.
The ending WIP was 80% complete with respect tomaterial, but only 30% of the conversion work has
been done.
Compute the cost per shingle produced.
Example 2: Some Units Not FullyComplete (Ending WIP)
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7-17
Example 2: Some Units Not FullyComplete (Ending WIP)
Step 1: Compute the flow of physical goods
Beginning
Balance +
Transfers
In -
Transfers
Out =
Ending
Balance0 + 1,200,000 - 1,000,000 = 200,000
100% complete for materials
100% complete for conversion
100% complete for materials
100% complete for conversion
80% complete for materials
30% complete for conversion
80% complete for materials
30% complete for conversion
. .
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Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
# of Partially Completed Units
× % Completion =Equivalent Units in Ending WIP
Equivalent Units for Materials:? × ? = ?
Equivalent Units for Conversion:? × ? = ?
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7-19
Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
# of Partially Completed Units
× % Completion =Equivalent Units in Ending WIP
Equivalent Units for Materials:200,000 × 80% = 160,000
Equivalent Units for Conversion:200,000 × 30% = 60,000
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-20
Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
Equivalent Units in Ending WIP
+
Units Completed & Transferred
Out
=Total
Equivalent Units
Equivalent Units for Materials:? + ? = ?
Equivalent Units for Conversion:? + ? = ?
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-21
Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
Equivalent Units in Ending WIP
+
Units Completed & Transferred
Out
=Total
Equivalent Units
Equivalent Units for Materials:160,000 + ? = ?
Equivalent Units for Conversion:60,000 + ? = ?
From the priorcomputation.
From the priorcomputation.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-22
Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
Equivalent Units in Ending WIP
+
Units Completed & Transferred
Out
=Total
Equivalent Units
Equivalent Units for Materials:160,000 + 1,000,000 = ?
Equivalent Units for Conversion:60,000 + 1,000,000 = ?
Transferred from WIP to FinishedGoods
Transferred from WIP to FinishedGoods
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7-23
Example 2: Some Units Not FullyComplete (Ending WIP)
. .
Step 2: Compute Equivalent Units:
Equivalent Units in Ending WIP
+
Units Completed & Transferred
Out
=Total
Equivalent Units
Equivalent Units for Materials:160,000 + 1,000,000 = 1,160,000
Equivalent Units for Conversion:60,000 + 1,000,000 = 1,060,000
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Example 2: Some Units Not FullyComplete (Ending WIP)
.
Materials ConversionStep 3: Summarize the Total Costs to Account For $350,000 $385,000
Step 4: Compute Cost per Equivalent Unit ÷ 1,160,000 ÷ 1,060,000
Per Unit Cost $0.3017 $0.3632
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Example 2: Some Units Not FullyComplete (Ending WIP)
UnitsCost Per
Unit TotalGoods Completed 1,000,000 0.6649 $664,936Ending WIP: Materials 160,000 0.3017 48,272 Conversion 60,000 0.3632 21,792Total $735,000
Step 5: Assign Costs to Units Completed and In-Process
Note that this number is rounded by $36.Note that this number is rounded by $36.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-26
Example 2: Some Units Not FullyComplete (Ending WIP)
.UnitsCost Per
Unit TotalGoods Completed 1,000,000 0.6649 $664,936Ending WIP: Materials 160,000 0.3017 48,272 Conversion 60,000 0.3632 21,792Total $735,000
Step 5: Assign Costs to Units Completed and In-Process
Ending WIP = $48,272 + $21,792 = $70,064Ending WIP = $48,272 + $21,792 = $70,064
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-27
Recognizing Spoilage
Spoilage represents the amount of resources that gointo the process, but DO NOT result in finished product.
The 5-step approach discussed earlier can be modifiedby including Spoilage as an additional type of input and
adjusting the formulas accordingly.
Spoilage represents the amount of resources that gointo the process, but DO NOT result in finished product.
The 5-step approach discussed earlier can be modifiedby including Spoilage as an additional type of input and
adjusting the formulas accordingly.
Step 1: Compute the flow of physical goods
Beginning
Balance +
Transfers
In -
Transfers
Out =
Ending
Balance.
This now includes FinishedGoods & Spoilage.
This now includes FinishedGoods & Spoilage.
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7-28
Recognizing SpoilageStep 2: Computing Equivalent Units:
# of Partially
Completed Units
×%
Completion =
Equivalent Units of Production
(EU)
Use this computation for EU in Ending WIP and EU in Spoilage.
EU in Ending
WIP +
EU in Spoilage
+Units Completed
& Transferred Out =
Total Equivalent
Units
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7-29
Recognizing SpoilageSteps 3 & 4 are not affected by Spoilage.Steps 3 & 4 are not affected by Spoilage.
UnitsCost Per
Unit TotalGoods CompletedSpoilageEnding WIP: Materials ConversionTotal
Step 5: Assign Costs
Spoilage is added as anadditional line item in
Step 5.
Spoilage is added as anadditional line item in
Step 5.
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7-30
Beginning & Ending WIP PlusSpoilage
When there is Beginning WIP, thedetermination of equivalent units
becomes somewhat more complicated.
When there is Beginning WIP, thedetermination of equivalent units
becomes somewhat more complicated.
Primary question to be answered:Which units were completed first
during the period?(How you answer this question willaffect the Total EU for the period.)
Primary question to be answered:Which units were completed first
during the period?(How you answer this question willaffect the Total EU for the period.)
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7-31
Beginning & Ending WIP PlusSpoilage
Weighted Average vs. FIFOWeighted Average vs. FIFO
Weighted-Average
All units and costsare considered
together to determineaverage cost per EU,regardless of whether
the costs wereincurred last period
or currently.
Weighted-Average
All units and costsare considered
together to determineaverage cost per EU,regardless of whether
the costs wereincurred last period
or currently.
FIFOCosts are accountedfor by layer. Cost perEU for this period iscomputed separatelyfrom the Cost per EU
for last period.
FIFOCosts are accountedfor by layer. Cost perEU for this period iscomputed separatelyfrom the Cost per EU
for last period.
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Beginning & Ending WIP PlusSpoilage
Weighted-Average
All units and costsare considered
together to determineaverage cost per EU,regardless of whether
the costs wereincurred last period
or currently.
Weighted-Average
All units and costsare considered
together to determineaverage cost per EU,regardless of whether
the costs wereincurred last period
or currently.
Weighted-Average isthe most
commonlyused method.
Weighted-Average isthe most
commonlyused method.
Weighted Average vs. FIFOWeighted Average vs. FIFO
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Example: Weighted-AverageFor August, Clark purchased 100,000 board feet ofcedar for $400,000. They spent $120,000 on labour
and had other process overhead of $155,000.
Clark started 1,400,000 units in August, completing1,200,000 units. Ending WIP had 350,000 shingles.Beginning WIP was 200,000 shingles. Spoilage was
50,000 completed shingles.
The ending WIP was 70% complete for material, and40% complete for conversion. Beginning WIP was80% for material and 30% complete for conversion.
Compute the cost per toothpick produced in August.
For August, Clark purchased 100,000 board feet ofcedar for $400,000. They spent $120,000 on labour
and had other process overhead of $155,000.
Clark started 1,400,000 units in August, completing1,200,000 units. Ending WIP had 350,000 shingles.Beginning WIP was 200,000 shingles. Spoilage was
50,000 completed shingles.
The ending WIP was 70% complete for material, and40% complete for conversion. Beginning WIP was80% for material and 30% complete for conversion.
Compute the cost per toothpick produced in August.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-34
Example: Weighted-Average
Step 1: Compute the flow of physical goods
Beginning
Balance +
Transfers
In -
Transfers
Out =
Ending
Balance200,000 + 1,400,000 - 1,250,000 = 350,000
80% complete for materials
30% complete for conversion
80% complete for materials
30% complete for conversion
70% complete for materials
40% complete for conversion
70% complete for materials
40% complete for conversion
. .
Goods Completed + SpoilageGoods Completed + Spoilage
.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
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Example: Weighted-Average
. .
Step 2: Compute Equivalent Units:
# of Partially Completed Units
× % Completion =Equivalent Units
in Beginning WIP
Equivalent Units for Materials:200,000 × 80% = 160,000
Equivalent Units for Conversion:200,000 × 30% = 60,000
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-36
Example: Weighted-Average
. .
Step 2: Compute Equivalent Units:
# of Partially Completed Units
× % Completion =Equivalent Units in Ending WIP
Equivalent Units for Materials:350,000 × 70% = 245,000
Equivalent Units for Conversion:350,000 × 40% = 140,000
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-37
Example: Weighted-Average
. .
EU in Ending
WIP +
EU in Spoilage
+Units Completed
& Transferred Out =
Total Equivalent
Units
EU for Materials245,000 + 50,000 + 1,200,000 = 1,495,000
EU for Conversion140,000 + 50,000 + 1,200,000 = 1,390,000
Step 2: Total Equivalent UnitsStep 2: Total Equivalent Units
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
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Example: Weighted-Average
.
Materials ConversionStep 3: Beg. WIP Costs $48,272 $21,792 Current Costs 400,000 275,000 Total $448,272 $296,792Step 4: ÷ 1,495,000 ÷ 1,390,000 Per Unit Cost 0.2998 0.2135
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UnitsCost Per
Unit TotalGoods Completed 1,200,000 0.5133 $616,040 *Spoilage 50,000 0.5133 $25,668 *Ending WIP: Materials 245,000 0.2998 $73,463 * Conversion 140,000 0.2135 $29,893 *Total $745,064
* rounded
Step 5: Assign Costs
Example: Weighted-Average
Ending WIP = $73,463 + $29,893 = $103,356Ending WIP = $73,463 + $29,893 = $103,356
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7-40
Let’s go overthat storyagain . . .Only thistime, let’suse FIFO!
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-41
Example: FIFO
Step 1: Compute the flow of physical goods
Beginning
Balance +
Transfers
In -
Transfers
Out =
Ending
Balance200,000 + 1,400,000 - 1,250,000 = 350,000
80% complete for materials
30% complete for conversion
80% complete for materials
30% complete for conversion
70% complete for materials
30% complete for conversion
70% complete for materials
30% complete for conversion
. .
Goods Completed + SpoilageGoods Completed + Spoilage
.
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Example: FIFO
. .Total EU –Beg. WIP
EU =
Current Period EU
EU for Materials1,495,000 – 160,000 = 1,335,000
EU for Conversion1,390,000 – 60,000 = 1,330,000
Step 2: With FIFO, compute the Current PeriodEquivalent Units by subtracting the Beg. WIP
Equivalent Units.
Step 2: With FIFO, compute the Current PeriodEquivalent Units by subtracting the Beg. WIP
Equivalent Units.
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7-43
Example: FIFO
.
Materials ConversionStep 3: Beg. WIP Costs Ignore! Ignore! Current Costs 400,000 275,000 Total $400,000 $275,000Step 4: ÷ 1,335,000 ÷ 1,330,000 Per Unit Cost $0.2996 $0.2068
Step 3: With FIFO, we only use the CurrentPeriod Costs, and we ignore the Beg. WIP
Costs.
Step 3: With FIFO, we only use the CurrentPeriod Costs, and we ignore the Beg. WIP
Costs.
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UnitsCost Per
Unit TotalGoods Completed 1,200,000 Mixed $617,390 *Spoilage 50,000 $0.5064 $25,320 *
Ending WIP: Materials 245,000 $0.2996 $73,402 *
Conversion 140,000 $0.2068 $28,952 *Total $745,064
* rounded
Step 5: Assign Costs
Example: FIFO
Ending WIP = $73,402 + $28,952 = $102,354Ending WIP = $73,402 + $28,952 = $102,354
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UnitsCost Per
Unit TotalBeginning Costs 200,000 $70,064Costs to Complete Beg. Inventory Materials (20% left) 200,000 $0.2996 11,984 * Conversion (70% left) 200,000 $0.2068 $28,952 *Started & Finished 1,000,000 $0.5064 $506,400 *Total $617,400
* rounded
Proof of Cost of Completed Goods
Example: FIFO
Return
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7-46
Now let’s see if you cancompute the Cost per
Equivalent Unit yourself. Ofcourse, if you don’t think
you can handle thechallenge, you can end thissession by clicking on the
sad fellow below.
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7-47
Cost Per Equivalent UnitExample: Weighted-Average
For September, Clark, Inc. purchased 95,000 boardfeet of cedar for $375,000. Clark spent $140,000 onlabour and had other process overhead of $120,000.
Clark started 1,100,000 units in July, completing1,000,000 units. Beginning WIP was 350,000 units.They were 70% complete for material ($78,719) and40% complete for conversion ($32,214). Spoilage
was 60,000 completed shingles.
The ending WIP was 75% complete for material, and60% complete for conversion.
Compute the September cost per shingle produced.
For September, Clark, Inc. purchased 95,000 boardfeet of cedar for $375,000. Clark spent $140,000 onlabour and had other process overhead of $120,000.
Clark started 1,100,000 units in July, completing1,000,000 units. Beginning WIP was 350,000 units.They were 70% complete for material ($78,719) and40% complete for conversion ($32,214). Spoilage
was 60,000 completed shingles.
The ending WIP was 75% complete for material, and60% complete for conversion.
Compute the September cost per shingle produced.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-48
Cost Per Equivalent UnitExample: Weighted-Average
What are the equivalent units in Ending WIPwith respect to materials?
A. 350,000 shingles
B. 390,000 shingles
C. 245,000 shingles
D. 292,500 shingles
Return to originalinfo.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-49
Cost Per Equivalent UnitExample: Weighted-Average
What are the equivalent units in Ending WIPwith respect to materials?
A. 350,000 shingles
B. 390,000 shingles
C. 245,000 shingles
D. 292,500 shingles
Return to originalinfo.
This is the number ofunits (at various stages
of completion) inBeginning WIP. Try
again.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-50
Cost Per Equivalent UnitExample: Weighted-Average
What are the equivalent units in Ending WIPwith respect to materials?
A. 350,000 shingles
B. 390,000 shingles
C. 245,000 shingles
D. 292,500 shingles
Return to originalinfo.
This is the number ofunits (at various stages
of completion) inEnding WIP. Try again.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-51
Cost Per Equivalent UnitExample: Weighted-Average
What are the equivalent units in Ending WIPwith respect to materials?
A. 350,000 shingles
B. 390,000 shingles
C. 245,000 shingles
D. 292,500 shingles
Return to originalinfo.
This is the number ofequivalent units in
Beginning WIP. Tryagain.
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7-52
Cost Per Equivalent UnitExample: Weighted-Average
What are the equivalent units in Ending WIPwith respect to materials?
A. 350,000 shingles
B. 390,000 shingles
C. 245,000 shingles
D. 292,500 shingles
Congratulations!You can now
proceed.
390,000 × 75.00% = 292,500
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-53
Cost Per Equivalent UnitExample: Weighted-Average
For September, Clark, Inc. purchased 95,000 boardfeet of cedar $375,000. Clark spent $140,000 on
labour and had other process overhead of $120,000.
Clark started 1,100,000 units in July, completing1,000,000 units. Beginning WIP was 350,000 units.They were 70% complete for material ($78,719) and40% complete for conversion ($32,214). Spoilage
was 60,000 completed shingles.
The ending WIP was 75% complete for material, and60% complete for conversion.
Compute the September cost per shingle produced.
For September, Clark, Inc. purchased 95,000 boardfeet of cedar $375,000. Clark spent $140,000 on
labour and had other process overhead of $120,000.
Clark started 1,100,000 units in July, completing1,000,000 units. Beginning WIP was 350,000 units.They were 70% complete for material ($78,719) and40% complete for conversion ($32,214). Spoilage
was 60,000 completed shingles.
The ending WIP was 75% complete for material, and60% complete for conversion.
Compute the September cost per shingle produced.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-54
Cost Per Equivalent UnitExample: Weighted-Average
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
Return to originalinfo.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-55
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
Cost Per Equivalent UnitExample: Weighted-Average
Return to originalinfo.
This is not thecorrect answer.
Try again.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-56
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
Cost Per Equivalent UnitExample: Weighted-Average
Return to originalinfo.
This is not thecorrect answer.
Try again.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-57
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
Cost Per Equivalent UnitExample: Weighted-Average
Return to originalinfo.
This is the cost perequivalent with
respect toconversion. Try
again.
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-58
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
What is the cost per equivalent unit withrespect to materials?
A. $ .2258 per shingle
B. $ .3213 per shingle
C. $ .3355 per shingle
D. $ .3655 per shingle
Cost Per Equivalent UnitExample: Weighted-Average
Congratulations!You can now
proceed.
$453,719 ÷ 1,352,500 = 0.3355
© The McGraw-Hill Companies, Inc., 2000Irwin/McGraw-Hill
7-59
End of Chapter 7
I get thefeelingI’m in
over myhead!