Question

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 Costs 4,100 Beginning work in process inventory 12,500 Direct materials $2,980 5,628 Conversion $ 8,608 205,350 129,686 114,556 $458,194 $ 52,661 Status of ending work in process inventory Direct materials added 100% Direct labor added Materials-Percent complete Conversion-Percent complete 30% Overhead applied (88% of direct labor) Total costs to account for Ending work in process inventory 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. (Do not round intermediate calculations. Round "Cost per EUP" to 2 decimal places.) Total costs to account for: osts of beginning work in process 8,608 449,586 $458,194 458,194 osts incurred this period Total costs to account for Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Beginning work in process inventory Units started this period 4,100 12,500

Answer 1

Total costs accounted for
Costs of beginning goods in process	8608
Costs incurred this period	449586
Total costs to account for:	458194
Total costs accounted for	458194
Difference due to rounding cost/unit	0
Units to account for:
Beginning goods in process inventory ­ units	4100
Units started this period	12500
Total units to account for	16600
Total units accounted for:
Units completed and transferred out	13400		32500
Ending goods in process ­ units	3200
Total units accounted for	16600
Equivalent units of production (EUP)­ weighted average method
	Units	% Materials	EUP­ Materials	% Conversion	Conversion
Units completed and transferred out	13400	100.00%	13400	100.00%	13400
Ending goods in process ­ units	3200	100.00%	3200	30%	960
Total Units	16600		16600		14360
Cost Per Equivalent unit of Production			Direct Material		Conversion
Costs of beginning goods in process			2980		5628
Costs incurred this period			205350		244236
Total Costs		Costs	208330	Costs	249864
Equivalent Unit of Production			16600		14360
Cost Per Equivalent unit of Production			12.55		17.40
Total costs accounted for
Cost of Units Transferred out	EUP	Cost Per EUP	Total Cost
Direct Material	13400	12.55	168,170.00
Conversion	13400	17.40	233,160.00
Total Cost Transferred out			401,330.00
Cost of Ending Work in Progress	EUP	Cost Per EUP	Total Cost
Direct Material	3200	12.55	40,160.00
Conversion	960	17.40	16,704.00
Total Cost of Ending Work in Progress			56,864.00
Total Cost accounted for				458194