You must memorize the following formats. All problems will give you all the information. You need to know where to put it and how to do the calculations.

Equivalent Units Schedule (all quantity, no dollars)

Calculate cost per equivalent unit:

Calculate cost per equivalent unit:

         Average Cost per Equivalent Unit =                Product costs $ 
                                                                                Equivalent units

After you have memorized the things above, follow these steps in this order.

         You are doing three things:
             1 & 2) Calculate equivalent units for each product type you have info for
             3 & 4) Compute cost per equivalent unit
                    5) Value work in process and finished goods at the end of the period

1) Fill out the quantity column (1st column) in the equivalent units schedule
Beginning inventory and started will be given – total and also put the total below. Beginning inventory and total are the same numbers below as above, fill in the S/C and Ending WIP from info given Remember that completed/transferred means S/C + Beginning

Once you put in what you know, you may have to plug to get the other quantity numbers.

2) Using the information given in the problem, fill out the equivalent unit columns For W.A – beginning is always 100%, same number as total For FIFO – beginning is the total x the % done this period only Started/Completed is always 100%, same number as total For ending – take the total x the % complete so far this period Total equivalent units for each – material, labor, O/H; or conversion

3) Get the cost information given in the problem for each type of product cost
For W.A. – add the beginning $ + Added this period $ and get total $ to use For FIFO – only use the $ added this period (ignore B.I $)

4) Calculate a cost per unit for each equivalent unit column: material, labor, O/H, Conv.
Costs $ / Total Equivalent units in the column = $ Cost per E.U

5) Use the cost per equivalent unit and value the WIP and FG
Value of inventory is always: cost per EU x EUs in the row on the schedule

Process Costing – Problem 1. Weighted Average

Gemini, Inc. makes noodles and uses process costing. The company began the month with 10,000 EU of noodles in process that were 40% complete as to material and 25% complete as to conversion. During the month, 232,000 EU of noodles were started. At the end of the month, 6,000 EU noodles were still in process (80% complete as to material and 70% complete as to conversion). Cost information for the month is as follows:

A. Calculate equivalent units using weighted average
B. Calculate cost per equivalent unit for material and conversion using weighted average
C. Prepare a cost reconciliation report using weighted average

Process Costing – Problem 2. FIFO

Gemini, Inc. makes noodles and uses process costing. The company began the month with 10,000 EU of noodles in process that were 40% complete as to material and 25% complete as to conversion. During the month, 232,000 EU of noodles were started. At the end of the month, 6,000 EU noodles were still in process (80% complete as to material and 70% complete as to conversion). Cost information for the month is as follows:

A. Calculate equivalent units using the FIFO method
B. Calculate cost per equivalent unit for material and conversion using the FIFO method
C. Prepare a cost reconciliation report using the FIFO method