Cost Accounting

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Problem 1:

Kali Manufacturing Inc. began the year with the following.


Beginning work-in-process


20% complete

Transferred to finished goods


Ending inventory


70% complete

Materials added at the beginning of the process

Calculate the equivalent units for

  1. material costs under the weighted average process cost method;
  2. conversion costs under the weighted average process cost method;
  3. material costs under the FIFO process cost method; and
  4. conversion costs under the FIFO process cost method.

Problem 2:

Glass Company manufactures a product through a continuous single-step
process. All materials are added at the beginning of processing.
Production and cost data for the company for the current month are as

Production Data


In process, beginning of month (20% converted)


Started during current month


Completed and transferred to finished goods


In process, end of month (60% converted)


Manufacturing Costs

Work in process, beginning





Production Costs Added



  -Direct labor cost


  -Factory overhead cost


Prepare a cost of production report for current month. Use Weighted-Ave process costing.

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