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Multiply the number of work-in-progress units by their amount of completeness in the costing area.
eg if 200 units are work-in-progress and they have used 100% materials, 50% labour and 40% overhead, then the equivalent units would be:
materials used: 200 x 100% = 200 units
labour used: 200 x 50% = 100 units
overheads used: 200 x 40% = 80 units.
A value for the work-in-progress can be calculated for each cost area by multiplying the equivalent units in that area by the cost per unit in that area and summing these values.
For the above, if the costs are materials: £7/unit, Labour: £6/unit, Overheads: £5/unit, then the cost value of the 200 work-in-progress units is:
200 x £7 + 100 x £6 + 80 x £5 = £2400
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