Question

Exercise 16-17 Weighted Average: Process cost summary LO C3 Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May. Units Beginning work in process inventory Started Ending work in process inventory 4,000 12,000 3,000 Costs Beginning work in process inventory Direct materials Conversion $ 2,880 5,358 Status of ending work in process inventory Materials-Percent complete Conversion-Percent complete Direct materials added 100% Direct labor added 25% Overhead applied (90% of direct labor) Total costs to account for Ending work in process inventory $ 8,238 197,120 123, 680 111,312 $440,350 $ 50,610 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for

Answer 1

Total costs to account for :
Beginning work in process inventory				8,238
cost added during the year				432,112
Total costs to account for				440,350
Total costs accounted for				440,350
Difference due to rounding cost/unit				0
Unit reconciliation
Units to account for :
Beginning work in process inventory				4,000
Started				12,000
Total units to account for				16,000
Total units accounted for :
Started and completed				13,000
Ending work in process inventory				3,000
Total units accounted for				16,000
Equivalent units of production -(EUP)- weighted average method
				Units	% mat	EUP-Mat	% CC	EUP-CC
Started and completed				13,000	100%	13,000	100%	13,000
Ending work in process inventory				3,000	100%	3,000	25%	750
Total units				16,000		16,000		13,750
Cost per Equivalent unit of production						Materials		CC
Beginning work in process inventory						2,880		5,358
cost added during the year						197,120		234992
total costs					Costs	200,000	Costs	240,350
Equivalent units of production					EUP	16,000	EUP	13,750
Cost per Equivalent unit of production						12.5		17.48
Total costs accounted for :
Cost of units transferred out:				EUP	cost per EUP	Total cost
Direct Materials				13,000	12.50	162500
Conversion				13,000	17.48	227240
total costs transferred out							389740
Cost of ending work in process				EUP	cost per EUP	Total cost
Direct Materials				3,000	12.50	37500
Conversion				750	17.48	13110
Total cost of ending work in process							50610
Total costs accounted for							440350