Weighted Average

Department 1
Quantity Schedule
Beg units 32,500
Units started 120,000
Total 152,500

DM CC
Completed and Transferred 125,000 100% 125,000 100%
WIP, end 27,500 60% 16,500 20%
Total 152,500 141,500

Cost Schedule
Cost added in the department
WIP, beg
Materials 200,000.00
Conversion Cost 187,500.00
Added during the month
Materials 875,000.00 7.59717
Conversion Cost 500,000.00 5.26820
Total Cost to be accounted for 1,762,500.00 12.86537

Completed and transferred 1,608,171.55

WIP, end
Materials 125,353.36
Conversion Cost 28,975.10 154,328.45
Total Cost accounted for 1,762,500.00
 Department 2
Quantity Schedule
Beg units 22,500
Transferred in 125,000
Total 147,500

CC
125,000 DM CC
5,500 Completed and Transferred 112,500 100% 112,500 100% 112,500
130,500 WIP, end 35,000 0% 0 40% 14,000
Total 147,500 112,500 126,500

Cost Schedule
Cost from preceding department
Beg, WIP 287,500.00
From preceding dept 1,608,171.55
Total 1,895,671.55 12.85201
Cost added in the department
WIP, beg
Materials 120,000.00
Conversion Cost 42,500.00
Added during the month
Materials 125,000.00 2.17778
Conversion Cost 300,000.00 2.70751
Total Cost to be accounted for 2,483,171.55 17.73730

Completed and transferred 1,995,446.04

WIP, end
From preceding dept 449,820.37
Materials 0.00
Conversion Cost 37,905.14 487,725.51
Total Cost accounted for 2,483,171.55
FIFO
Department 1
Quantity Schedule
Beg units 32,500
Units started 120,000
Total 152,500

DM CC
WIP,beg 32,500 20% 6,500 25%
Completed and Transferred 92,500 100% 92,500 100%
WIP, end 27,500 60% 16,500 20%
Total 152,500 115,500

Cost Schedule
Cost added in the department
WIP, beg
Materials 200,000.00
Conversion Cost 187,500.00
Added during the month
Materials 875,000.00 7.57576
Conversion Cost 500,000.00 4.71143
Total Cost to be accounted for 1,762,500.00 12.28718

Completed and transferred

WIP, Beg
Cost last month 387,500.00
Cost added this month 87,522.75
Started and completed 1,136,564.41 1,611,587.16
WIP, end
Materials 125,000.00
Conversion Cost 25,912.84 150,912.84
Total Cost accounted for 1,762,500.00
 Department 2
Quantity Schedule
Beg units 22,500
Transferred in 125,000
Total 147,500

CC DM CC
8,125 WIP,beg 22,500 30% 6,750 60% 13,500
92,500 Completed and Transferred 90,000 100% 90,000 100% 90,000
5,500 WIP, end 35,000 0% 0 40% 14,000
106,125 Total 147,500 96,750 117,500

Cost Schedule
Cost from preceding department
Beg, WIP 287,500.00
From preceding dept 1,611,587.16
Total 1,899,087.16 12.89270
Cost added in the department
WIP, beg
Materials 120,000.00
Conversion Cost 42,500.00
Added during the month
Materials 125,000.00 1.29199
Conversion Cost 300,000.00 2.55319
Total Cost to be accounted for 2,486,587.16 16.73788

Completed and transferred

WIP, Beg
Cost last month 450,000.00
Cost added this month 43,189.02
Started and completed 1,506,409.06 1,999,598.08
WIP, end
From preceding dept 451,244.41
Materials 0.00
Conversion Cost 35,744.68 486,989.09
Total Cost accounted for 2,486,587.16
Weighted Average
Assembly Department
Quantity Schedule
Beg units 10,000
Units started 40,000
Total 50,000

DM CC
Completed and Transferred 35,000 100% 35,000 100%
WIP, end 15,000 100% 15,000 80%
Total 50,000 50,000

Cost Schedule
Cost added in the department
WIP, beg
Materials 300,000.00
Conversion Cost 700,000.00
Added during the month
Materials 1,200,000.00 30.00000
Conversion Cost 2,800,000.00 74.46809
Total Cost to be accounted for 5,000,000.00 104.46809

Completed and transferred 3,656,382.98

WIP, end
Materials 450,000.00
Conversion Cost 893,617.02 1,343,617.02
Total Cost accounted for 5,000,000.00
 Department 2
Quantity Schedule
Beg units 5,000
Transferred in 35,000
Total 40,000

CC DM CC
35,000 WIP,beg 5,000 100% 5,000 70% 3,500
12,000 Completed and Transferred 32,000 100% 32,000 100% 32,000
47,000 WIP, end 3,000 0% 0 90% 2,700
Total 40,000 37,000 38,200

Cost Schedule
Cost from preceding department
Beg, WIP 1,000,000.00
From preceding dept 3,656,382.98
Total 4,656,382.98 104.46809
Cost added in the department
WIP, beg
Materials 600,000.00
Conversion Cost 400,000.00
Added during the month
Materials 3,000,000.00 81.08108
Conversion Cost 5,000,000.00 130.89005
Total Cost to be accounted for 13,656,382.98 316.43922

Completed and transferred

WIP, Beg
Cost last month 2,000,000.00
Cost added this month 863,520.59
Started and completed 10,126,054.99 12,989,575.58
WIP, end
From preceding dept 313,404.26
Materials 0.00
Conversion Cost 353,403.14 666,807.40
Total Cost accounted for 13,656,382.98
ACCOUNTING FOR LOST UNITS
NORMAL LOST UNITS
> These are spoiled units which are expected or anticipated, usual and unavoidable in
the production process or within the tolerance limit set by the company.
> Cost of normal units are accounted as product costs.

ABNORMAL LOST UNITS

> These are spoiled units which are unexpected, not inherent, unusual and avoidable or
if it is expected, it is beyond the tolerance limit set by the company.
> The cost of the abnormal lost units will be accounted as period costs.

DETECTION OF LOST UNITS

CONTINUOUS LOSS
> loss occur evenly throughout the production process

CONTINUOUS NORMAL LOST UNITS

Determination of Stage of Completion

Inspection Point Stage of Completion
Start of the Process 0% - Use the theory of neglect
During the process 0% - assumed to have been inspected at the start of the process
End of the Process 100%

Computation of Cost of Lost Units

Inspection Point Department 1
Start/During No Cost

EUP of normal lost units x Unit cost

End
of Dept 1

Absorbing Good Units

FIFO Cost Flow Start/ During
WIP beg. & Transferred NO
Started & Transferred YES
WIP, end YES

Weighted Average Start/ During

Started and Transferred YES
WIP, end YES
CONTINUOUS ABNORMAL LOST UNITS

Determination of Stage of Completion

Inspection Point Stage of Completion
Start of the Process 0% - Use the theory of neglect
During the process 100% - assumed to have been inspected at the end of process
End of the Process 100%

Computation of Cost of Lost Units

Inspection Point Department 1
Start/During No Cost

EUP of abnormal lost units x Unit

End
cost of Dept 1

Absorbing Good Units

The costs of the abnormal lost units are not absorbed by the good units in the process and it shall
be treates as period costs.
pated, usual and unavoidable in
et by the company.

nherent, unusual and avoidable or

the company.
d as period costs.

Stage of Completion
0% - Use the theory of neglect
have been inspected at the start of the process
100%

Subsequent Department
Actual normal lost units x Unit cost from
preceding dept.

(EUP of normal lost units x Units cost of

this department) + (Actual normal lost
units x Unit cost from preceding dept)

End
YES
YES
NO

End
YES
NO
 Stage of Completion
0% - Use the theory of neglect
d to have been inspected at the end of process
100%

Subsequent Department
Actual abnormal lost units x Unit cost from
preceding dept.
(EUP of abnormal lost units x Units cost of
this department) + (Actual abnormal lost
units x Unit cost from preceding dept)

by the good units in the process and it shall

DISCRETE LOSS
> it occurs at the specific point in the production process and it will be detected only when
the form performed a quality control inspection at the inspection point.

> The cost of normal discrete lost units should only be allocated to units that have passed
the inspection point.

> The cost of abnormal discrete lost units should be considered as period costs.

SCENARIOS
Application Rate Inspection Rate EUP
Start < 30% 100%
50% > 30% 0%
Evenly 30% 30%
1. Inspection at the start and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 0% 0 0% 0
Total 5,000 4,500 4,260

2. Inspection at the start and materials are added at the end of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 0% 0 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 0% 0 0% 0
Total 5,000 3,900 4,260

3. Inspection at the end and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 100% 400
Abnormal lost 100 100% 100 100% 100
Total 5,000 5,000 4,760

4. Inspection at the end and materials are added at the end of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 0% 0 60% 360
Normal lost 400 100% 400 100% 400
Abnormal lost 100 100% 100 100% 100
Total 5,000 4,400 4,760

5. Inspection point is silent and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 100% 100 100% 100
Total 5,000 4,600 4,360

6. Inspection point is silent and materials are added at the end of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 0% 0 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 100% 100 100% 100
Total 5,000 4,000 4,360

7. Inspection point is at 20% completion and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 20% 80
Abnormal lost 100 100% 100 20% 20
Total 5,000 5,000 4,360

8. Inspection point is at 40% completion and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 40% 160
Abnormal lost 100 100% 100 40% 40
Total 5,000 5,000 4,460

9. Inspection point is at 60% completion and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 60% 240
Abnormal lost 100 100% 100 60% 60
Total 5,000 5,000 4,560

10. Inspection point is at 80% completion and materials are added at the start of the process.
WAVE
DM CC
Started & Completed 3,900 100% 3,900 100% 3,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 80% 320
Abnormal lost 100 100% 100 80% 80
Total 5,000 5,000 4,660
the process.
FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 0% 0 0% 0
Total 5,000 3,500 3,960

he process.
FIFO
DM CC
WIP, beg 1,000 100% 1,000 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 0% 0 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 0% 0 0% 0
Total 5,000 3,900 3,960

he process.
FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 100% 400
Abnormal lost 100 100% 100 100% 100
Total 5,000 4,000 4,460

e process.
FIFO
DM CC
WIP, beg 1,000 100% 1,000 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 0% 0 60% 360
Normal lost 400 100% 400 100% 400
 Abnormal lost 100 100% 100 100% 100
Total 5,000 4,400 4,460

of the process.
FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 100% 100 100% 100
Total 5,000 3,600 4,060

of the process.
FIFO
DM CC
WIP, beg 1,000 100% 1,000 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 0% 0 60% 360
Normal lost 400 0% 0 0% 0
Abnormal lost 100 100% 100 100% 100
Total 5,000 4,000 4,060

d at the start of the process.

FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 20% 80
Abnormal lost 100 100% 100 20% 20
Total 5,000 4,000 4,060

d at the start of the process.

FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 40% 160
Abnormal lost 100 100% 100 40% 40
Total 5,000 4,000 4,160

d at the start of the process.

FIFO
DM CC
 WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 60% 240
Abnormal lost 100 100% 100 60% 60
Total 5,000 4,000 4,260

ed at the start of the process.

FIFO
DM CC
WIP, beg 1,000 0% 0 70% 700
Started & Completed 2,900 100% 2,900 100% 2,900
WIP,end 600 100% 600 60% 360
Normal lost 400 100% 400 80% 320
Abnormal lost 100 100% 100 80% 80
Total 5,000 4,000 4,360
 WAVE
DM CC
Started & Completed 60,000 100% 60,000 100% 60,000
WIP,end 10,000 80% 8,000 80% 8,000
Normal lost 8,000 80% 6,400 75% 6,000
Abnormal lost 22,000 80% 17,600 75% 16,500
Total 100,000 92,000 90,500

DM
Beg + Current Cost 1,400,000
EUP 92,000
Cost per EUP 15.22

CC
Beg + Current Cost 2,100,000
EUP 90,500
Cost per EUP 23.20
 FIFO
DM CC
WIP, beg 20,000 20% 4,000 28% 5,600
Started & Completed 40,000 100% 40,000 100% 40,000
WIP,end 10,000 80% 8,000 80% 8,000
Normal lost 8,000 80% 6,400 75% 6,000
Abnormal lost 22,000 80% 17,600 75% 16,500
Total 100,000 76,000 76,100

DM
Current Cost 1,000,000
EUP 76,000
Cost per EUP 13.16

CC
Beg + Current Cost 1,500,000
EUP 76,100
Cost per EUP 19.71
1. All materials are added at the start of production and the inspection point is at the end

FIFO
Department 1
Quantity Schedule
Beg units 11,250
Units started 120,000
Total 131,250
DM CC
WIP,beg 11,250 0% 0 40%
Completed and Transferred 97,500 100% 97,500 100%
WIP, end 19,500 100% 19,500 70%
Normal lost 1,650 100% 1,650 100%
Abnormal lost 1,350 100% 1,350 100%
Total 131,250 120,000

Cost Schedule
Cost added in the department
WIP, beg
Materials 15,600.00
Conversion Cost 20,700.00
Added during the month
Materials 180,000.00 1.50000
Conversion Cost 525,915.00 4.43249
Total Cost to be accounted for 742,215.00 5.93249

Completed and transferred

WIP, Beg
Cost last month 36,300.00
Cost added this month 19,946.21
Started and completed 578,417.83
Cost of normal loss 9,788.61 644,452.64
WIP, end
Materials 29,250.00
Conversion Cost 60,503.50 89,753.50
Abnormal loss 8,008.86
Total Cost accounted for 742,215.00
ection point is at the end of the process.

Weighted Average
Department 1
Quantity Schedule
Beg units 32,500
Units started 120,000
Total 152,500
CC
4,500
97,500 DM CC
13,650 Completed and Transferred 108,750 100% 108,750 100% 108,750
1,650 WIP, end 19,500 100% 19,500 70% 13,650
1,350 Normal lost 1,650 100% 1,650 100% 1,650
118,650 Abnormal lost 1,350 100% 1,350 100% 1,350
Total 131,250 131,250 125,400

Cost Schedule
Cost added in the department
WIP, beg
Materials 15,600.00
Conversion Cost 20,700.00
Added during the month
Materials 180,000.00 1.49029
Conversion Cost 525,915.00 4.35897
Total Cost to be accounted for 742,215.00 5.84926

Completed and transferred 636,106.70

Normal loss 9,651.27 645,757.97
WIP, end
Materials 29,060.57
Conversion Cost 59,499.96 88,560.53
Abnormal loss 7,896.50
Total Cost accounted for 742,215.00
2. Materials are added at the start of production and the inspection point is at 60% of the

FIFO
Department 1
Quantity Schedule
Beg units 11,250
Units started 120,000
Total 131,250
DM CC
WIP,beg 11,250 0% 0 40%
Completed and Transferred 97,500 100% 97,500 100%
WIP, end 19,500 100% 19,500 70%
Normal lost 1,650 100% 1,650 60%
Abnormal lost 1,350 100% 1,350 60%
Total 131,250 120,000

Cost Schedule
Cost added in the department
WIP, beg
Materials 15,600.00
Conversion Cost 20,700.00
Added during the month
Materials 180,000.00 1.50000
Conversion Cost 525,915.00 4.47778
Total Cost to be accounted for 742,215.00 5.97778

Completed and transferred

WIP, Beg
Cost last month 36,300.00
Cost added this month 20,150.00
Started and completed 582,833.33
Cost of normal loss 5,951.10 645,234.43
WIP, end
Materials 29,250.00
Conversion Cost 61,121.67
Share in normal loss 956.90 91,328.57
Abnormal loss 5,652.00
Total Cost accounted for 742,215.00

Share in normal loss 6,908.00

Materials
Completed (97,500/117,000) 2,062.50
In Process (19,500/117,000) 412.50 2,475.00
Conversion Cost
Completed (97,500/111,150) 3,888.60
 In Process (13,650/111,150) 544.40 4,433.00
Total 6,908.00
on point is at 60% of the process.

Weighted Average
Department 1
Quantity Schedule
Beg units 32,500
Units started 120,000
Total 152,500
CC
4,500
97,500 DM CC
13,650 Completed and Transferred 108,750 100% 108,750 100% 108,750
990 WIP, end 19,500 100% 19,500 70% 13,650
810 Normal lost 1,650 100% 1,650 60% 990
117,450 Abnormal lost 1,350 100% 1,350 60% 810
Total 131,250 131,250 124,200

Cost Schedule
Cost added in the department
WIP, beg
Materials 15,600.00
Conversion Cost 20,700.00
Added during the month
Materials 180,000.00 1.49029
Conversion Cost 525,915.00 4.40109
Total Cost to be accounted for 742,215.00 5.89137

Completed and transferred 640,686.78

Share in normal loss 5,956.27 646,643.05
WIP, end
Materials 29,060.57
Conversion Cost 60,074.84
Share in normal loss 859.78 89,995.19
Abnormal loss 5,576.77
Total Cost accounted for 742,215.00

Share in normal loss 6,816.05

Materials
2,475.00 Completed (180,750/128,250) 2,085.09 2,458.97
In Process (19,500/128,250) 373.88 2,458.97
Conversion Cost
4,433.00 Completed (108,750/122,400) 3,871.18
In Process (13,650/122,400) 485.90 4,357.08 4,357.08
Total 6,816.05
FIFO
Department 1
Quantity Schedule
Beg units 20,000
Units started 150,000
Total 170,000
DM
WIP,beg 20,000 0%
Completed and Transferred 112,500 100%
WIP, end 30,000 100%
Normal lost 6,000 100%
Abnormal lost 1,500 100%
Total 170,000

Cost Schedule
Cost added in the department
WIP, beg
Materials 135,000.00
Conversion Cost 97,500.00
Added during the month
Materials 1,980,000.00 13.20000
Conversion Cost 3,088,800.00 19.80000
Total Cost to be accounted for 5,301,300.00 33.00000

Completed and transferred

WIP, Beg
Cost last month 232,500.00
Cost added this month 316,800.00
Started and completed 3,712,500.00
Cost of normal loss 198,000.00 4,459,800.00
WIP, end
Materials 396,000.00
Conversion Cost 396,000.00 792,000.00
Abnormal loss 49,500.00
Total Cost accounted for 5,301,300.00
 Weighted Average
Department 2
Quantity Schedule
Beg units 10,000
Units started 132,500
Total 142,500
DM CC
0 80% 16,000
112,500 100% 112,500 DM
30,000 2/3 20,000 Completed and Transferred 121,250 100%
6,000 100% 6,000 WIP, end 17,500 0%
1,500 100% 1,500 Normal lost 2,500 0%
150,000 156,000 Abnormal lost 1,250 0%
Total 142,500

Cost Schedule
Cost from preceding department
Cost last month 285,450.00
Cost this month 4,459,800.00 33.30000
Cost added in the department
WIP, beg
Materials 214,875.00
Conversion Cost 280,725.00
Added during the month
Materials 840,000.00 8.70000
Conversion Cost 1,282,500.00 11.40000
Total Cost to be accounted for 7,363,350.00 53.40000

Completed and transferred 6,474,750.00

Normal loss
Cost from preceding 83,250.00
Materials 0.00
Conversion Cost 25,650.00 6,583,650.00
WIP, end
Cost from preceding 582,750.00
Materials 0.00
Conversion Cost 142,500.00 725,250.00
Abnormal loss 54,450.00
Total Cost accounted for 7,363,350.00
DM CC
121,250 100% 121,250
0 5/7 12,500
0 90% 2,250
0 90% 1,125
121,250 137,125

10.65
425,902.80 8,275.20
173,500.00
30,958.46
630,361.26

630,361.26