process costing using average costing method

Please do not simply set me a question to answer - you must have an answer in the same book in which you found the question :-) You should watch the free lectures on process costing. If you then still have a problem then ask about which bit of the answer is giving you the problem. (Incidentally, you cannot be asked to prepare a process account in Paper F2. You will be asked to either calculate the value of the completed units, or to calculate the value of the closing work-in-progress.)

sorry about that I calculated equivalent units for : materials to be 1,300 units labour to be 1,180 units production overheads to be 1,150 units I calculated cost per unit for material to be (22,000+98,000)/1,300 = $92.308 labour to be (60,000+6,960)/1,180 = $56.746 production overhead (39,000+3,000)/1,150 = $36.521 When I calculate the fully completed units:(1,000*$92.308)+(1,000*$56,746)+(1,000*$36.521) = $185,575 But now I am not sure on how to calculate the closing work in progress

Have you watched the lecture? The equivalent units for materials is 1200 (200 WIP b/f + 1000 added; 900 complete + 300 WIP c/f) So the cost of materials is 120,000 / 12,000 = $10 per unit. The equivalent units for labour is 900 + (60% x 300) = 1080 So the labour cost per unit = 66960 / 1080 = $62 per unit The equivalent units for overheads is 900 + (50% x 300) = 1050 So the overhead cost per unit = 42,000 / 1050 = $40 per unit. Giving a full cost per unit of $112 per unit The value of the completed units, is therefore 900 x $112 For the WIP, you value the materials, labour and overhead elements separately and then add them up. If the overheads (for example) are 50% finished, then you value the overhead element at 50% of unit cost. You really must watch the lecture - I cannot simply type out the lecture here.

Thank you for your help after watching the lecture I understood how to calculate the closing work in progress :)

You are welcome :-)