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    Imhiding Posts: 14, Reputation: 1
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    Oct 20, 2011, 03:53 PM
    I need help undeerstanding how to do process costing.
    For equivalent units of production section: If there was no beginning work-in-progress inventory, then where do I begin with the information.

    Under the Equivalent Units of prodcution;

    Beginning work-in-progress - physical units -Direct Materials costs Percent Done equivalent units.
    Started and completed
    Ending work-in-progress
    Equivalent units of production transferred out.

    If the manufacturing process was : $15,360 ffor direct materials an $33,512 for conversion costs. If there was no beginning wwork-in-progress, does that whole first line get -0-?

    During the mionthj 3200 pounds of direvct material were placed in prodcution. At the end of the month 600 pounds were still being processed and wer 40% complete.

    Do I put the 3200 pounds in the beginning work-in-progress and 600 pounds ending work in process at 40%

    Does the 3200 pounds only stay in the equivalent units production section or does that amount go in the Product Cost per unit section?

    I am just so confused because of the one sentence of "there was no beginning work in progress inventory at the beginning of the month?

    I have been working on this for two days and I am no where.

    Thanks

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