COGS =

ProcessCo produces a product in a continuous process and collected the following information for the month of June in the first processing department. Beginning Work in Process Inventory: 300 units Materials: 40% complete $ 6,119 Conversion: 20% complete $ 3,920 Production started during June Production completed during June 6,000 units 5,400 units Costs added to production in June Materials cost Conversion cost $ 118,621 $ 81,130 900 units Ending Work in Process Inventory: Materials: 60% complete Conversion: 30% complete 1. Compute units to account for and units accounted for. Units Units in beginning work in process inventory Units started into production (or transferred in) Units to account for Units in ending work in process inventory Units completed and transferred out Units accounted for 2. Compute equivalent units for materials and conversion costs. Equivalent Units Materials Conversion Units Ending WIP Inventory Transferred out Total 3. Compute cost per Equivalent Unit units Unit cost is computed by dividing the accumulated costs by the number of produced in the period. Materials Conversion Total Costs in beginning WIP inventory Costs added during the period Total costs - Equivalent units (EU) Cost per equivalent units (EU) 4. Apply Costs to ending WIP inventory and units transferred out by preparing a Cost Reconciliation Report. Cost Reconciliation Report Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory (1) Cost of units transferred out (2) Total cost accounted for (1) Ending WIP: (2) Transferred Out: WIP FGI