Question

Check n The following partially completed process cost summary describes the July production activities of Ashad Company Its production output is sent to its warehouse for shipping. 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 Materials 35,58e EUP 3,080 EUP 38,580 EUP Conversion 35,500 EUP 1,888 EUP 37,380 EUP Direct Materials Conversi Costs per EUP Costs of beginning work in process Costs incurred this period Total costs $ 24,150 2,9e0 403,200213,440 $ 427,35e 216,340 Units in beginning work in process (all completed during July) Units started this period Units completed and transferred out 2,580 36,80e 35,580 < Prey 16 of 20 Next > 26

Answer 1

Total costs to account for:
Costs of beginning work in process	27050
Costs incurred this period	616640
Total costs to account for	643690
Total costs accounted for	643690
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	2500
Units started this period	36000
Total units to account for	38500
Total units accounted for:
Units completed and transferred out	35500
Ending work in process	3000
Total units accounted for	38500
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	35500	100%	35500	100%	35500
Ending work in process	3000	100%	3000	60%	1800
Total units	38500		38500		37300
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			24150		2900
Costs incurred this period			403200		213440
Total costs		Costs	427350	Costs	216340
÷ Equivalent units of production		EUP	38500	EUP	37300
Cost per equivalent unit of production			11.10		5.80
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	35500	11.10	394050
Conversion	35500	5.80	205900
Total cost transferred out				599950
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	3000	11.10	33300
Conversion	1800	5.80	10440
Total Cost of ending work in Process				43740
Total cost accounted for				643690