LIM Unit 4 Process Costing Steps in Determining the Weighted Average Costs for Process Costing 1. Recap Costs 2. Determine the physical flow of units - how many physical units did you work on? 3. Determine EUP 1. For materials (always at 100%) 2. For conversion costs (direct labor and overhead) 4. Determine the unit cost 1. For materials 2. For conversion costs 3. And total 5. Allocate the costs incurred to goods 1. Finished and not finished 6. Reconcile ending balance of WIP Dept 1 Resources Problem 1 DE LF Unit 4 Reach Chapter 20 Process Costing 6000 Reno Co has several processing departments. Costs charged to Department A for January totaled $265,500 $13,500 8000 12 WIP 1/1 13 Materials 14 Conversion costs 15 Materials added during the month 16 Labor added during the month 17 Overhead added during the month $21,500 75,000 104,750 64,250 Records indicated that 3,500 units were in beginning WIP 30% completed as to conversion costs. 17,500 units were started into production and 4,500 units were in ending WIP 60% complete as to conversion costs. Materials are entered at the beginning of each process. Resources Problem 1 GA T A9 X for CADEI FIG RELATED Records indicated that 3,500 units were in beginning WIP 30% completed as to conversion costs. 17,500 units were started into production and 4,500 units were in ending WIP 60% complete as to conversion costs. Materials are entered at the beginning of each process. ELE 21 Beginning Units 22 Started Units 23 Ending Units 24 Materials 25 Conversion 3,5005599 17,500 4,500 100% complete 70% complete 34 1. Determine the EUP (equivalent units of production) 35 2. Determine the assignment of costs to goods transferred out and in process Resources Problem 1 A9X NUTI EEL 34 1. Determine the EUP (equivalent units of production) 35 2. Determine the assignment of costs to goods transferred out and in process 37 S E E WIP Dept 1 38 Debits Credits 39 Beg Inventory - Materials 3 213500 P ? you will fill this in when it Beginning Conversion costs Amount is represented transferred to at the end of 8,000 D ept 2 the problem. 41 Direcmt material 75,000 42 Direct Labor 104,750 43 Overhead 64,250 44 44 265,500 45 1. Calculate the This month's conversion costs: Overhead . 48 version 49 (use numbers above to recap here) 50 1. RECAP COSTS Materials 51 Beginning inventory (last month) 52 This month Total Resources Problem 1 . Clipboard Font Formatting - Table A9 X T 1. Calculate the This month's conversion costs: conversion 19 (use numbers above to recap here) 1. RECAP COSTS Materials 51 Beginning inventory (last month) 52 This month Total SED ELS Account for units - Determine the Physical Flow Beginning WIPOSAS Units started To account for S S SR PE Completed and transferred out Ending WIP To account for TE 3. Calculate Equivalent Units - EUP Materials Units units completed and transferred Resources Problem 1 T ER DE aterial EUP Materials 3. Calculate Equivalent Units La Units units completed and transferred out units of ending WIP equivalent units 11 Units Conversion EUP Conversion units completed and transferred out units of ending WIPL equivalent units 4. Determine Unit Costs Dir Materials Conversion Costs Beg inventory Costs added this month Total EUP Total Cost Units Problem 1 Resources x . Total Cost Units Cost per unit Total Cost per Unit 5. Allocate costs Assignment of costs Finished Units Per Unit Total Journal Entry to transfer Work in Process Costs from Dept A to Dept B Debit Credit Total cost 6. Determine Cost of ending WIP inventory EUP cost per EUP Direct material Conversion Costs total cost of ending work is process Resources Problem 1 Total cost 00 01 6. Determine Cost of ending WIP inventory EUP cost per EUP Direct material Conversion Costs total cost of ending work is process 04 77 Concept Check: o Beg Inventory - Materials Beginning Conversion costs Direcmt material 3 Direct Labor 4 Overhead Ending balance WIP Dept 1 Debits Credits 13,500 8,000 75,000 104,750 64,250 Resources Problem 1
