Question

Tiscercise 20-12 Weighted average: Completing a process cost summary c3 The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% com- plete with respect to conversion. Prepare its process cost summary using the weighted average method. Direct Materials Conversion Equivalent Units of Production Units transferred out .............. Units of ending work in process.... Equivalent units of production...... 32,000 EUP 1.500 EUP 33,500 EUP Units Units in beginning work in process fall completed during July).... Units started this period .............. Units completed and transferred out .. . Units in ending work in process....... 2,000 32,500 32,000 2.500 Costs per EUP Costs of beginning work in process.... Costs incurred this period .......... Total costs... 32,000 EUP 2,500 EUP 34,500 EUP Direct Materials $ 18.550 357,500 $376,050 Conversion $ 2,280 183.670 $190.950

Answer 1

Units reconciliation
Units to account for
Units in beginning work in process	2000
Units started this period	32500
Total units to account for	34500
Total units accounted for
Units completed and transferred out	32000
Units in ending work in process	2500
Total units accounted for	34500
Equivalent Units of Production- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	32000	100%	32000	100%	32000
Units in ending work in process	2500	100%	2500	(1500*100/2500)= 60%	(2500*60%)= 1500
Equivalent units of production	34500		34500		33500
Cost per Equivalent Unit of Production			Materials		Conversion
Cost of beginning work in process			$18550		$2280
Cost of ending work in process			357500		188670
Total costs			$376050		$190950
Equivalent units of production			34500		33500
Cost per equivalent unit of production			$10.90		$5.70
Total costs to account for:
Direct materials- Prior period	$18550
Direct materials- Current period	357500
Conversion- Prior period	2280
Conversion- Current period	188670
Total cost to account for	$567000
Total cost accounted for	567000
Difference due to rounding cost/unit	$0
Cost Assignment and Reconciliation:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	32000	$10.90	$348800
Conversion	32000	$5.70	182400
Total cost transferred out				$531200
Cost of ending work in process:
Direct materials	2500	$10.90	$27250
Conversion	1500	$5.70	8550
Total cost of ending work in process				$35800
Total cost accounted for				$567000