1. Chapter 18 Exercises Process Costing

2. In-Class Exercise (Form groups and work exercise): Exercise No. Page 18 - 1 Handout Equivalent Units (Use the format, as reflected on the next chart, to begin this exercise) In-Class Exercise (Form groups and work exercise): Exercise No. Page 18 - 1 Handout Equivalent Units (Use the format, as reflected on the next chart, to begin this exercise) Equivalent Units

5. Material Equivalent Units

6. Equivalent Units Started & Finished: Completed units………..187,500 Started units……………….201,250 Beginning Inventory…...(37,500) (or) Ending inventory………… (51,250) Started & Finished……..150,000 Starter & Finished……….. 150,000

7. Equivalent Units

8. Cost Flow Assumption: All material is added when the production process begins.

9. Conversion Equivalent Units Equivalent Units

10. Cost Flow Assumption: Labor & overhead are added evenly through out the production process.

11. Equivalent Units Cost Flow Assumption: Labor & overhead are added evenly through out the production process.

12. End of Exercise Equivalent Units