Managerial
Process costing (weighted average)
Equivalent units, cost per unit, and the split between completed output and work in progress.
The mixing department at Calder Paints adds all pigment and base at the start of the process; conversion (labour and overhead) is added evenly. Weighted average pools opening work in progress with this month’s costs.
Completed and transferred out
180,000.00
Closing work in progress
21,900.00
Cost per completed unit
10.0000
| Line | Physical units | Materials EU | Conversion EU |
|---|---|---|---|
| Completed and transferred out | 18,000 | 18,000 | 18,000 |
| Closing WIP100% materials, 40% conversion | 3,000 | 3,000 | 1,200 |
| Equivalent units | 21,000 | 21,000 | 19,200 |
| Total cost (opening + added) | 115,500.00 | 86,400.00 | |
| Cost per equivalent unit | 5.5000 | 4.5000 |
| Opening WIP | 2,000 |
| Started this month | 19,000 |
| To account for | 21,000 |
| Completed | 18,000 |
| Closing WIP | 3,000 |
| Accounted for | 21,000 |
Units started is the balancing figure.
| Opening WIP | 12,700.00 |
| Added this month | 189,200.00 |
| To account for | 201,900.00 |
| Completed and transferred out | 180,000.00 |
| Closing WIP | 21,900.00 |
| Accounted for | 201,900.00 |
✓ Costs reconcile exactly. Closing WIP is rounded to the cent; completed cost is the balancing figure.
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- Process costing · Cost and Managerial Accounting
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