Work In Process Inventory Calculator

This calculator helps businesses determine the value of work-in-process inventory by calculating the equivalent units of production and assigning costs accordingly.

Input Parameters

Calculation Results

Calculation Formula

Equivalent Units of Production = Beginning WIP × (1 - Completion%) + Units Started × (1 - Ending Completion%)

Where:
Beginning WIP × (1 - Completion%): Adjusts for work already done
Units Started × (1 - Ending Completion%): Accounts for incomplete units
Materials Cost + Conversion Cost: Total cost per equivalent unit

Equivalent Units of Production (Units)

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Total Cost of Work-in-Process Inventory ($)

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Cost per Equivalent Unit ($)

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Cost in Ending Work-in-Process ($)

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Work In Process Inventory Calculator Usage Guide

Learn how to use the Work In Process Inventory Calculator and understand its working principles

How to Use This Calculator

  1. Enter the beginning work-in-process inventory units
  2. Enter the ending work-in-process inventory units
  3. Specify the completion percentage of beginning work-in-process
  4. Enter the materials cost per unit
  5. Enter the conversion cost per unit (e.g., labor, overhead)
  6. Enter the number of units started during the period
  7. Click the "Calculate" button to view the results

Understanding the Results

The calculator provides several important metrics:

  • Equivalent Units of Production: Adjusted units accounting for incomplete work
  • Total Cost of Work-in-Process Inventory: The total value of work-in-process
  • Cost per Equivalent Unit: The average cost per unit of production
  • Cost in Ending Work-in-Process: The value of unfinished units at the end of the period

Working Principle

This calculator uses the weighted average method to determine the equivalent units of production. It assumes that all units and costs are evenly distributed throughout the production process.

Example Scenario

Suppose a company has 100 units in beginning WIP with 40% completion, 200 units started during the period, and 50 units in ending WIP with 60% completion. If materials cost $5 per unit and conversion costs $3 per unit, the calculator will determine the equivalent units, total costs, and other important metrics.