Ch 17Thursday, October 11, 201210:33 PM1. Process Costing - 3 Cases

a. No ending WIPi. DM cost per unit = total DM cost/total units

ii. CC per unit = total CC /total unitsb. No BWIP, EWIP

i. Determine 1. The cost of fully assembled units2. The cost of partially assembled units still in process at the end of the period

ii. 5 Step Process1. Calculate physical units2. EUs

i. 2x2 matrixii. Bottom 2 based on %

iii. Material & conversion costsiv. Weighted average methodv. Only EWIP is usable

3. Allocated Costi. DM

ii. CCiii. Current Cost (same period)iv. BWIP

4. Calculate Allocation Ratesi. DM

ii. CC5. Multiply

i. 2x2 matrixii. No FIFO on exam

c. BWIP & EWIPi. 5 steps

ii. Weighted average methodd. Focus is finding equivalent unit (EU)e. Why do we need EUs ? f. Allocate separately for conversion and direct materials