Question

WHAT AM I MISSING?

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% complete with respect to conversion. Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Direct Conversion Materials 33,500 EUP 33,500 EUP 4,000 EUP 2,400 EUP 37,500 EUP 35,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 34,050 367,200 $ 401,250 Conversion $ 3,780 190,080 $ 193,860 Units in beginning work in process (all completed during July) Units started this period Units completed and transferred out Units in ending work in process 3,500 34,000 33,500 4,000

Answer 1

Costs Charged to Production
Unit Costs
Cost of beginning Work in process (34050+3780)	$37,830.00
Costs incurred this period (367200+190080)	$557,280.00
Total Cost to account for	$595,110.00
Total Cost accounted for	$595,110.00
Difference due to rounding cost/unit	$0.00
Unit Reconciliation
Units to account for:
Beginning Work in process	3500
Started into production	34000
Total Units to account for	37500
Total Units accounted for:
Units completed and transferred out	33500
Ending Work in process	4000
Total Units accounted for	37500

Equivalent Units of Production (EUP)- FIFO
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Beginning Work in process	3500	0%	0	80%	2800
Units Started and Completed (33500-3500)	30000	100%	30000	100%	30000
Ending Work in process	4000	100%	4000	60%	2400
Equivalent Units of Production	37500		34000		35200
Cost per EUP			Materials		Conversion
Costs incurred this period			$        367,200		$            190,080
Total Cost to be accounted for		Costs	$        367,200	Costs	$            190,080
÷ Equivalent units		EUP	34000	EUP	35200
Cost per EUP (rounded to 2 decimals)			$10.80		$5.40
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total Cost
Cost of beginning Work in process				$          37,830
Cost to complete beginning Work in process
Direct Materials	0	$10.80	$0
Conversion	2800	$5.40	$15,120
Total Costs to complete beginning Work in process				$ 15,120
Cost of units started and completed this period	EUP	Cost per EUP	Total Cost
Direct Materials	30000	$10.80	$324,000
Conversion	30000	$5.40	$162,000
Total Cost of units started and completed this period				$ 486,000
Total Costs of work finished this period				$        538,950
Cost of Ending Work in proces	EUP	Cost per EUP	Total Cost
Direct Materials	4000	$10.80	$43,200
Conversion	2400	$5.40	$12,960
Total ending Work in proces				$ 56,160
Total costs accounted for				$        595,110

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