Question

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, Direct Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Materials 37,500 EUP 2,000 EUP 39,500 EUP 37,500 EUP 1,200 EUP 38, 700 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 13,450 $ 1,860 440, 8002 38, 080 $454,250 $239, 940 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 1,500 38,000 37,500 2,000

Answer 1

Costs charged to production
Costs of beginning work in process	15310
Costs incurred this period	678880
Total costs to account for	694190
Total costs accounted for	694190
Difference due to rounding cost/unit	0
Unit reconciliation
Units to account for:
Beginning work in process inventory	1500
Units started this period	38000
Total units to account for	39500
Total units accounted for:
Units completed and transferred out	37500
Ending work in process	2000
Total units accounted for	39500
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	37500	100%	37500	100%	37500
Ending work in process	2000	100%	2000	60%	1200
Equivalent units of production	39500		39500		38700
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			13450		1860
Costs incurred this period			440800		238080
Total costs		Costs	454250	Costs	239940
÷ Equivalent units of production		EUP	39500	EUP	38700
Cost per equivalent unit of production			11.50		6.20
Cost assignment and reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Direct materials	37500	11.50	431250
Conversion	37500	6.20	232500
Total cost transferred out				663750
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	2000	11.50	23000
Conversion	1200	6.20	7440
Total Cost of ending work in Process				30440
Total cost accounted for				694190