EUP: D1 D2

Lost U Occurred @
Start of the process 0 0
DURING THE PROCESS
Continous ( C ) 0 0
Discrete ( D ) % OF COMP % OF COMP
END 100% 100%

COST:
Lost U Occurred @
Start of the process 0 T-IN cost
DURING THE PROCESS
C 0 T-IN cost
D EUP @ U-COST T-IN cost
EUP@U-COST
END 100% 100% T-IN
100% THIS DEPT

ABSORBING UNITS:
Lost U Occurred @
Start of the process 0 all units except bwip
DURING THE PROCESS
C 0 all units except bwip
D EUP EUP
END ALL, except ewip ALL, except ewip

Discrete loss: a loss that is assumed to occur at a specific point and that is detectible only when a quality check is performed

Method of neglect: a method whereby the costs of normal shrinkage and normal continuous losses in a process costing envir
excluded from the equivalent units schedule thus resulting in a smaller number of equivalent units of production; dividing produ
smaller number of equivalent units raises the cost per equivalent unit, thus spreading the cost of lost units proportionately over
transferred and those remaining in work in process inventory
ly when a quality check is performed

ous losses in a process costing environment are

ent units of production; dividing production costs by a
cost of lost units proportionately over the good units
QTY: LOST UNITS at the end of the process:
BWIP, 100% M, 80% CC 6000 T-out 40000
T-IN 42000 EWIP, 50% as 4000
48000 to M, 20% CC

ACTUAL T-IN MAT CC

T-OUT 40,000 40,000 40,000 40,000
NORMAL LOST UNITS 2,500 2,500 2,500 2,500
ABNORMAL LOST UNITS 1,500 1,500 1,500 1,500
EWIP 4,000 4,000 2,000 800
Totals 48,000 48,000 46,000 44,800

COST: TOTAL T-IN MAT CC

BWIP 102,790 82,200 6,660 13,930
CURRENT 1,576,070 1,237,800 96,840 241,430
TOTAL 1,678,860 1,320,000 103,500 255,360

COST/EUP 35.45 27.50 2.25 5.70

F & T-OUT 1,418,000 1,100,000 90,000 228,000

NORMAL SPOILED Units 88,625 68,750 5,625 14,250
TOTAL COST T-OUT 1,506,625 1,168,750 95,625 242,250
ABNORMAL LOST UNITS 53,175 41,250 3,375 8,550
EWIP 119,060 110,000 4,500 4,560
TOTAL COST ACCOUNTED 1,678,860 1,320,000 103,500 255,360

WIP, D2 1,237,800
WIP, D1 1,237,800

FG 1,506,625
Loss from Abnormal Spoilage 53,175
WIP, D2 1,559,800
ST UNITS at the end of the process:
NORMAL 2500
ABNORMAL 1500

ACTUAL T-IN MAT CC

40,000 40,000 40,000 40,000
2,500 2,500 2,500 2,500
1,500 1,500 1,500 1,500
4,000 4,000 2,000 800
48,000 48,000 46,000 44,800

TOTAL T-IN MAT CC

102,790 82,200 6,660 13,930
1,576,070 1,237,800 96,840 241,430
1,678,860 1,320,000 103,500 255,360

35.45 27.50 2.25 5.70

Adjustment for normal Spoilage

Cost (2,500 x 35.45) 88625
37.67 Divide by 40000 2.215625
QTY: LOST UNITS at the end of the process:
BWIP, 100% M, 80% CC 6000 T-out 40000 NORMAL
T-IN 42000 EWIP, 50% as 4000 ABNORMAL
48000 to M, 20% CC
QTY:
BWIP 6000
T-IN 42000
48000
ACTUAL T-IN MAT CC
BWIP, F & T 6,000 - - 1,200
RECEIVED, F & T 34,000 34,000 34,000 34,000
NORMAL LOST UNITS 2,500 2,500 2,500 2,500
ABNORMAL LOST UNITS 1,500 1,500 1,500 1,500
EWIP 4,000 4,000 2,000 800
48,000 42,000 40,000 40,000

COST: TOTAL T-IN MAT CC

BWIP 102,790 82,200 6,660 13,930
CURRENT 1,576,070 1,237,800 96,840 241,430
TOTAL 1,678,860 1,320,000 103,500 255,360

COST/EUP 37.928 29.471 2.421 6.036

BWIP- COST LAST MO 102,790 82,200 6,660 13,930

- COST THIS MO 7,243 - - 7,243
F & T-OUT 1,289,558 1,002,029 82,314 205,216
NORMAL SPOILED U 94,820 73,679 6,053 15,089
TOTAL COST T-OUT 1,494,411 1,157,907 95,027 241,478
ABNORMAL LOST UNITS 56,892 44,207 3,632 9,054
EWIP 127,556 117,886 4,842 4,829
TOTAL COST ACCOUNTED 1,678,860 1,320,000 103,500 255,360
ST UNITS at the end of the process:
2500
1500
 Joy Company
Cost of Production Report -Department B
For the month ended, October 31, 2019

Quantity Schedule Original Actual EUP

BWIP, Finished & Transferred, Batch 1 3,000 2,700.0 1,800
BWIP, Finished & Transferred, Batch 2 2,500 2250 1,125
Received, Finished and Transferred 50,000 45,000 45,000
EWIP from Current period T-in units 10,000 9,500 4,750
TOTALS 59,450 52,675

Cost Schedule: U-cost Amount

BWIP
Batch1 7,830.00
Batch2 9,570.00 17,400.00
Tansferred in this month 120,000.00
Current Period costs
M 68,518.50
L 26,000.15
O 2.25 24,000.10 118,518.75
TOTAL Cost to account for 255,918.75

BWIP, FIN. & TRANS.

Cost Last month 17,400.00
Cost this month - B1 4,050.00
- B2 2,531.25 23,981.25
Received, Finished & Transferred
T-in Cost 100,000.00
Cost this Dept 101,250.00 201,250.00
Total Cost transferred out 225,231.25
EWIP
T-in, Current period 20,000.00
Cost this department 10,687.50 30,687.50
Total Cost Accounted for 255,918.75
rtment B
31, 2019