Question

In August, 45,000 units were started into production and 5,000 of these were still being worked on at the end of August. This ending inventory had 70% of the materials and 20% of the conversion costs already added as of August 31.

The Accounting Department tells you that August costs are $65,250 for materials and $82,000 for conversion costs.
Prepare the production cost report for August:

In September, 70,000 units were started into production and 10,000 were still being worked on at the end of the month. This ending inventory had 40% of the materials and 10% of the conversion costs already added as of September 30.
the September costs are $84,450 for Materials and $113,500 for labor and overhead combined.

Prepare the production cost report for September.

Answer 1

Calcualtion of valuation of WIP Ending at the end of august
		% Complete
Particulars	Physical Units	Material	conversion
WIP, Begnning	0	0	0
started into production	45000
Completed and transferred out	40000
WIP, Ending	5000	70	20
Particulars		Material	conversion
Cost added during the month		65250	82000
Total cost incurred till date		65250	82000
Particulars	Physical Units	Material	conversion
Units completed and transferred out	40000	40000	40000
WIP Ending (Physical units * respective department completion%)	5000	3500	1000
Total Equivalent units	45000	43500	41000
Calcualtion of Equivalent units cost for Direct material and conversion costs
Particulars		Material	conversion
Total cost incurred in the month of august		65250	82000
Total equivalent units		43500	41000
Equivalent Cost per unit (A)/(B)		1.5	2
Calculation of equivalent cost per unit and assign cost to the units completed and units in Ending WIP
Particulars		Material	conversion
Units completed and transferred out		40000	40000
Cost assign to completed and trasnferred out units (1.5*40000),(2*40000)		60000	80000
WIP Ending equivalent units		3500	1000
Cost assign to WIP Ending equivalent unit		5250	2000

Calcualtion of cost of WIP Ending at the end of august
		% Complete
Particulars	Physical Units	Material	conversion
WIP, Ending	5000	70	20
started into production	70000
Completed and transferred out	65000
WIP, Ending	10000	40	10
Particulars		Material	conversion
Begnning Work in process cost		5250	2000
Cost incurred during the month		84450	113500
Total cost incurred in the month of september		89700	115500
Particulars	Physical Units	Material	conversion
Units completed and transferred out	65000	65000	65000
WIP Ending (Physical units * respective department completion%)	10000	4000	1000
Total Equivalent units	75000	69000	66000
Calcualtion of Equivalent units cost for Direct material and conversion costs
Particulars		Material	conversion
Total cost incurred in the month of September		89700	115500
Total equivalent units		69000	66000
Equivalent Cost per unit (A)/(B)		1.3	1.75
Calculation of equivalent cost per unit and assign cost to the units completed and units in Ending WIP
Particulars		Material	conversion
Units completed and transferred out		65000	65000
Cost assign to completed and trasnferred out units (1.3*65000),(1.75*65000)		84500	113750
WIP Ending equivalent units		4000	1000
Cost assign to WIP Ending equivalent unit		5200	1750

this answer was calculated on equivalent weighted avg. method.

Please note all values are in %.

In case of any clarification required please comment.