Total
Transferred-in
production
costs
Direct materials
Conversion costs
costs
______________________________________________________________________
Cost per
Cost per
Cost per
Equivalent equivalent Total Equivalent equivalent Total
Equivalent equivalent Total
units unit costs units
unit
costs
units
unit
costs
(10)=
(1) (2)
(3)=(1)×(2) (4)
(5) (6)=(4)×(5) (7)
(8)
(9)=(7)×(8) (3)+(6)+(9)
Panel A Total costs to account for work in progress, opening
(from Solution Exhibit B) 40 1,000
*
40,000 0
–
0 30 600 18,000 58,000 Work done in current period only
(from Solution Exhibit B) 80 1,090
*
87,200 90 400 36,000 75 663 49,725 172,925 To account for
120 1,060
*
127,200 90
†
400
†
36,000 105
‡
645
‡
67,725 230,925 Panel B Assignment of costs Completed and transferred out
(90 physical tonnes)
**
90
**
1,060
*
95,400
**
90
**
400 36,000
**
90
**
645 58,050 189,450 Work in progress closing
(30 physical tonnes)
**
30
**
1,060
*
31,800
**
0
**
–
0*
15
**
645 9,675 41,475 Accounted for
120 127,200 90 36,000 105 67,725 230,925
*
Weighted-average cost per equivalent unit of transferred-in costs = Total transferred-in costs divided by total equivalent units of transferred-in costs = NKr 127,200 ÷ 120 = NKr 1,060.
**
From Solution Exhibit A.
†
Weighted-average costs per equivalent unit of direct materials = Total direct materials costs divided by total equivalent units of direct materials = NKr 36,000 ÷ 90 = NKr 400.
‡
Weighted-average cost per equivalent unit of conversion costs = Total conversion costs divided by total equivalent units of conversion costs = NKr 67,725 ÷ 105 = NKr 645.
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