# Part the aggregate expense in the middle of WIP and FG.

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Slide 1

﻿4 Chapter Process Costing WIP FG Splitting the aggregate cost amongst WIP and FG.

Slide 2

Beginning WIP Current Work Units Completed Ending WIP + = + ?

Slide 3

Units \$/Unit Total \$ Beg WIP Current Total Completed End WIP Total

Slide 4

Process Costing Example Textbook Example Units DM Conversion Beg WIP 200 \$ 9,600 \$ 5,575 Current period 5,000 368,600 350,900 Completed 4,800 ? ? End WIP 400 ? ?

Slide 5

1. Determine current period units by working in reverse. Physical Units DM Conv Completed End WIP (DM 40%, Conv 25%) Beg WIP (DM 55%, Conv 30%) Current Material for 4,850 units included amid the period. Enough work and overhead for 4,840 units.

Slide 6

2. Determine for each unit costs. DM Conversion Total Units \$/unit Total \$ Units \$/unit Total \$ Costs Beg WIP 110 60 Current 4,850 4,840 Total 4,960 4,900 3. Assign expenses to finished and end stock. Assignmnt Complete End WIP Total

Slide 7

DM Conversion Total Units \$/unit Total \$ Units \$/unit Total \$ Costs Beg WIP 110 \$ 9,600 60 \$ 5,575 \$ 15,175 Current 4,850 368,600 4,840 350,900 719,500 Total 4,960 \$378,200 4,900 \$356,475 \$734,675 FIFO Assignmnt Complete Beg WIP Completed Current Total End WIP Total