Skip to content
ENExplore Calculators

Process Costing Calculator

Work out process costing instantly with clear inputs, formula shown and shareable results.

About Process Costing Calculator

Process costing spreads a period's cost over equivalent units: completed units count fully and partly finished work counts in proportion to its completion. Dividing total cost by equivalent units gives a single rate used both to transfer cost out and to value closing work in progress.

Formulas

Equivalent units

EU = Units completed + (Closing WIP x Completion %)

Cost per equivalent unit

Cost per EU = Total process cost / Equivalent units

Worked example

With the default values below, Process Costing Calculator returns Cost per equivalent unit of $32.9218. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total process cost for the period
320,000
Units completed and transferred out
9,000
Closing work in progress units
1,200
Average completion of closing WIP
60

Results

Cost per equivalent unit
$32.9218
Equivalent units of production
9,720.0
Cost transferred to next process
$296,296.30
Closing WIP valuation
$23,703.70

Step by step

  1. 1Values used
  2. 2Equivalent units
  3. 3Cost per equivalent unit
  4. 4Cost per equivalent unit= 32.9218
  5. 5Equivalent units of production= 9,720.0
  6. 6Cost transferred to next process= 296,296.30
  7. 7Closing WIP valuation= 23,703.70

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should material and conversion cost be split?

In a full weighted-average computation, yes — material is often complete at the start while conversion is not. This calculator uses a single combined rate.

What about opening WIP?

Under the weighted-average method opening WIP cost is added to the period cost and its units are already inside units completed.

Related Calculators

Process Costing Calculator | Calcrivo