[Anonymous]

What does % complete mean-does this mean the % of the costs I’ve consumed or have remaining? If my Budget for Materials is $10000 units and I’ve used up 2000 units ($2000) by the end of the period, does this mean that my % complete for units at the end of the period is 20%?

For My Work In Process,Ending Inventory, I would write the following

WIP, End (8000 units)

Direct Materials (?% complete)

Conversion Costs(0%)

What does this mean Direct Materials, Ending(100% complete)?

The Direct Materials and Conversion Costs is referring to the ending units only. I’ve seen in problems 100% complete in the Direct Materials spot. What does this mean-does this mean that all the Direct Materials are unconsumed but just in its Raw Materials Form and zero have been converted?

If my problem says that 20% complete in terms of conversion costs, does this mean that 20% of the 8000 units have been converted to partial products?If this is true, then why is the % complete for the Direct Materials by the percentage of the cost of the 8000 units I’ve used up to make partially completed units? Why do I not record the Direct Materials % Complete as (20% of 8000 units or cost of (20% of the 8000 units)) used to make partial products?

Thank You

[Sandra]

Are you asked to use FIFO or weighted average method?

[Anonymous]

I have to do it using the Weighted-Average and FIFO method. I am just confused about what the terms % complete is referring to. For construction projects, it is referring to the % of budgeted costs that has been consumed by a certain date or end of the period. Is it the same for Process Accounting or is it referring to the units left?

What does it mean when it says that there are 1000 units left and Direct Materials is 100% complete and Conversion cost is 20% complete? I learned that this means that there are 200 units(1000*20%) of partially completed products in Works In Process but still 1000 units of Direct Materials Left. Why are there not 800 units of Direct Materials Left since 200 of them have been used to make incomplete products? Does the 1000 units include the amount that is in converted products and the 100% meaning that all of the costs were added?

If it says Direct Materials is 80% complete, then it means that we have used up 80% of the costs allocated for Direct Materials meaning only 80% of the raw materials needed for the process has been added?

thank you

[Sandra]

Under FIFO, you calculate the percentage complete- your EUP. You then use the costs for the period only to get your per unit cost. for weighted average you calculate the average cost per unit based on beginning and incurred costs.

I don't quite get your question but you need your Beginning WIP, the # of units you completed in the period, and ending WIP.

if you had 1000 units in BEGINNING inventory…. at 80% complete for materials it would mean that you would use an additional 20%- ie 200 EUP in the period. ENDING inventory of 1000 units at 80% complete means 800 units EUP.

Does that makes sense?

[Sandra]

I just remembered this woman. She helped me a ton with Part 1 of my CMA… I know there is a chapter on WIP costing, EUP, etc.

https://www.youtube.com/user/SusanCrosson/videos?view=1

Not great quality but its free!

[Author]

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