Work in process

The opening WIP needs 60% work to finish, so the equivalent units are 60% x 250 = 150. The output is 4,100 of which 250 were in WIP brought forward and so 4100 - 250 = 3850 were full completed this period. The abnormal loss (which is costed as though fully produced) is 275 units. So total of 3850 + 275 = 4125 units. The closing WIP is 30% finished, so the equivalent units are 30% x 150 = 45. So the total equivalent units = 150 + 4,125 + 45 = 4,320 I suggest that you watch my free lectures on process costing.

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