I'm a bit confused because the example in the book has "work in process, beginning" for units, while this one doesn't. I would know how to do it with that information but it seems like it's missing that data. Am I looking at this question the wrong way?

If anyone can find a similar example with the solution, that would be great because I usually learn with examples.

I'm not just trying to get the answer but HOW to get the answer.

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The Cutting Department of Groneman Manufacturing has the following production and cost data for July.

Production
1. Transferred out 9000 units
2. Started 3,000 units that are 60% complete as to materials at July 31

Costs
Beginning work in process $0
Materials 45,000
Labor 16,200
Manufacturng overhead 18,900

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

1. Determine the equivalent units of production for (1) materials and (2) conversion costs.
2. Compute unit costs and prepare a cost reconciliation schedule.

Oh yeah, here's what I started with (which is probably totally wrong... ):

Beg. WIP = 0
Started = 3000
Total = 3000

-----------------------Material --- Conversion
Transferred = 9000 | 9000 | 9000
End WIP = -6000 | -3600 | -6000
(?. 3000-9000 = -6000, I did it like the book example, and 60%*-6000 for materials)
Total = 3000 | 5400 | 3000

I have no idea what I'm doing...

The given information doesn't make any sense. If you have no beginning inventory and only started 3000 units, how do you transfer out 9000? That's impossible. Which might be partly why you're confused. It's also impossible to have the materials added at the beginning of the process and be 60% complete for materials. It also doesn't make any sense for the started number to give a percent complete - that belongs to ending inventory.

You may want to double-check that info. You should have a percent completion for the ending inventory, and it should be for conversion costs only if material is added at the beginning of the process. And the numbers just don't add up. So three things wrong.

In the meantime, having no beginning inventory actually makes it easier and eliminates some work. The units to be accounted for is beginning inventory plus the started. If there's no beginning inventory, then started is also your total units to be accounted for. If that confuses you, just insert 0 wherever you have a calculation for beginning inventory, since that's what it is.

It also means you don't have to do an equivalent unit for the beginning inventory because there is none. So it's like having the first line of the thing missing.

If the information matched up and made any sense, you might find that doing this with no beginning amount is a lot easier.

Hmm, I'm wondering if they mean there were 12,000 units. i.e. that 3000 of what was started is left. That's not how it's stated it though. It says 3000 were started. If they mean 12,000, they should say 12,000.

But the materials still wouldn't be 60% complete.

Opps.. It's actually: Started 3,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31.

The information given still doesn't make sense. To my understanding, I think the 60% completed conversion and 100% completed materials is for End WIP but without a proper Beg. WIP, the information is still off.

Well, that clears up the 60% of materials issue, but does not clear up anything else about it. So except for the possibility I stated in post #4, the info still doesn't make any sense. I'm confused and I know how to do it, so no wonder you're confused.