November

October (units) (units)

Opening work in progress 0 1500 October:
Units started in month 3900 2700
Total input for period 3900 4200

Units completed in month 2400 2400

Closing work in progress 1500 1800 November:

Variable costs
Materials £ 58,500.00 £ 48,600.00
Labour £ 36,000.00 £ 21,000.00
Fixed costs £ 63,000.00 £ 63,000.00
Sales Revenue £ 112,800.00 £ 120,000.00

Weighted- average method: October

Completed
Cost element Opening WIP Current cost Total cost Units
Materials 0 £ 58,500.00 £ 58,500.00 2400
Labour & Fixed costs
(Conversion costs) 0 £ 99,000.00 £ 99,000.00 2400
0 £ 157,500.00

Work in progress:
Materials (1500 units at
15) £ 22,500.00
Labour and fixed costs
(1200 units at 27.5) £ 33,000.00 £ 55,500.00
Completed units (2400 at
42.5) £ 102,000.00
£ 157,500.00

Profit and loss

Sales Revenue £ 112,800.00 Costs of goods sold102,000.00 € the WIP for October
Profit £ 10,800.00 would be shown on
the October balance
 Weighted- average method: November
Completed
Cost element Opening WIP Current cost Total cost Units
Previous
Materials £ 22,500.00 £ 48,600.00 £ 71,100.00 2400
Labour & Fixed costs £ 33,000.00 £ 84,000.00 £ 117,000.00 2400
55500 £ 188,100.00

Value of work in progress:

Materials (1800 units at
16.93) £ 30,471.43
Labour and fixed costs (900
units at 35.45) £ 31,909.09 £ 62,380.52
Completed units (2400 at
52.38) £ 125,719.48
£ 188,100.00

Profit and loss

Sales Revenue £ 120,000.00 Costs of goods sold125,719.48 €
Profit -£ 5,719.48
 units in closing work in progress: Opening work in progress
100% complete for materials Units started in month
80% complete for labour Total input for period

Units completed in month

units in closing work in progress: Closing work in progress
100% complete for materials
50% complete for labour Variable costs
Materials
Labour
Fixed costs
Sales Revenue

October First in, fir

WIP equiv. Total equiv.

Units Units Cost per unit Cost element
1500 3900 £ 15.00 Materials

1200 3600 £ 27.50 Labour & Fixed costs

£ 42.50

Completed production:

Closing WIP

Materials (1500 units at 15)

Labour and fixed (1200
units at 27.5)

the WIP for October Profit statement

would be shown on Revenue
October balance Profit
ovember
WIP equiv. Total equiv.
Units Units Cost per unit

1800 4200 £ 16.93

900 3300 £ 35.45
£ 52.38
October (units) November (units)
0 1500 October: units in closing work in progress:
3900 2700 100% complete for materials
3900 4200 80% complete for labour

2400 2400
1500 1800 November: units in closing work in progress:
100% complete for materials
50% complete for labour
£ 58,500.00 £ 48,600.00
£ 36,000.00 £ 21,000.00
£ 63,000.00 £ 63,000.00
£ 112,800.00 £ 120,000.00

First in, first out: November

Completed units
Current period less opening WIP Closing WIP equiv. Current total Cost per
costs equiv. Units Units equiv. Units unit
£ 48,600.00 900 1800 2700 £ 18.00

£ 84,000.00 1200 900 2100 £ 40.00

£ 132,600.00 £ 58.00

£ 16,200.00

£ 48,000.00

£ 55,500.00 £ 119,700.00

£ 32,400.00

£ 36,000.00 £ 68,400.00
£ 188,100.00

Profit statement
£ 120,000.00 Costs of goods sold £ 119,700.00
£ 300.00