Try the Average Method first, then scroll down when you have your answer.

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Again, in average method, the WIP – beginning is not separately accounted for. It is lumped in the Finished and transferred units.

As always, the finished units is 100% as to all cost elements.

For the WIP – ending, since the materials are all added at the beginning of the process, it is at 100%. For conversion, it was stated that it is 40% complete.

Let’s see the computations under FIFO, shall we?

Scroll down once you’ve tried computing and you have your EUP.

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In FIFO method, the WIP – beginning is presented separately. As to materials, it is at 0% because the cost has been accounted for in the previous period. For Conversion, since it is 70% complete already, for the current period only 30% is added to make them complete units.

Again, for finished units, it is at 100% for all cost elements.

For the WIP – ending, since the materials are all added at the beginning of the process, it is at 100%. For conversion, it was stated that it is 40% complete.

Notice that under both methods, the WIP – ending is accounted for in the same manner.

Let’s have another exercise. With a bit of a difference from our previous ones.

Hit complete and see next section.

Wait, are you still following your 15-5 routines? I would hate to break that habit. Go on and take your breaks after every 15 minutes of going through the discussions.