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  • Chapter 9 - Process Costing

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    Alexsandra Garcia
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    The document describes two methods for calculating process costs: weighted average and FIFO (first-in, first-out). For weighted average, it calculates equivalent units and relevant costs to determine the cost per equivalent unit. For FIFO, it uses only current period costs to determine the cost per equivalent unit.

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    The document describes two methods for calculating process costs: weighted average and FIFO (first-in, first-out). For weighted average, it calculates equivalent units and relevant costs to determine the cost per equivalent unit. For FIFO, it uses only current period costs to determine the cost per equivalent unit.

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    © All Rights Reserved
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    15 views4 pages

    Chapter 9 - Process Costing

    Uploaded by

    Alexsandra Garcia
    The document describes two methods for calculating process costs: weighted average and FIFO (first-in, first-out). For weighted average, it calculates equivalent units and relevant costs to determine the cost per equivalent unit. For FIFO, it uses only current period costs to determine the cost per equivalent unit.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    PROCESS COSTING

    Units Completion
    Materials Conversion
    WIP, beginning 10,000 WIP, beginning
    Started 40,000 Current period costs
    Transferred Out 33,000
    WIP, ending 15,000

    WEIGHTED AVERAGE FIFO


    Step 1: Equivalent Units
    Total Materials Conversion Total
    Transferred Out 33,000 WIP, beginning
    WIP, ending 15,000 Started & Completed
    WIP, ending

    Step 2: Relevant Costs


    Total Materials Conversion Total
    WIP, beginning Current period costs
    Current period costs
    *FIFO only uses current period costs

    Step 3: Cost per Equivalent Unit

    Materials Conversion
    Cost Cost
    Equivalent Unit Equivalent Unit
    ÷
    G
    Total Materials Conversion

    106,925 46,250 60,675


    435,960 170,625 265,335

    FIFO

    Materials Conversion

    Materials Conversion

    t period costs

    Materials Conversion

    ÷
    Units Completion
    Materials Conversion
    WIP, beginning 10,000 100% 70% WIP, beginning
    Started 40,000 Current period costs
    Transferred Out 33,000
    WIP, ending 15,000 60%

    WEIGHTED AVERAGE FIFO


    Step 1: Equivalent Units
    Total Materials Conversion Total
    Transferred Out 33,000 WIP, beginning
    WIP, ending 15,000 Started & Completed
    WIP, ending
    Total Materials Conversion

    106,925 46,250 60,675


    435,960 170,625 265,335

    FIFO

    Materials Conversion

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