Week 7 (Process Costing) formula

Question 1

Unit costs (weighted average) equation ?

Answer 1

Unit costs =
cost of beginning work in process inventory + cost added during the accounting period / equivalent units

Question 2

Cost of goods completed and transferred out (weighted out) equation ?

Answer 2

cost of goods completed & transferred goods =
units completed * total unit cost

Question 3

cost of ending work in process (weighted average) equation ?

Answer 3

cost of ending work in process (weighted average) =
DM: equivalent units in ending WIP * unit cost + CC: equivalent units in ending WIP * unit cost

Question 4

unit costs (FIFO) equation ?

Answer 4

unit costs (FIFO) =
costs added during the period / equivalent units

Question 5

cost of goods completed & transferred out (FIFO) equation ?

Answer 5

cost of goods completed & transferred out (FIFO) =

Question 6

cost of ending work in process (FIFO) equation ?

Answer 6

cost of ending work in process =
DM: equivalent units in ending WIP * unit cost
+
CC: equivalent units in ending WIP * unit cost