Question

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Exercise 3-17 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 6,000 22,000 7,000 Costs Beginning work in process inventory Direct materials Conversion $ 4,880 10,758 $ Status of ending work in process inventory Materials-Percent complete Conversion-Percent complete 100 % 25% Direct materials added Direct labor added Overhead applied (62.70% of direct labor) 15,638 373, 120 243,680 152,787 Total costs to account for $ 785,225 Ending work in process inventory $ 90,247 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.)

Answer 1

Solution:

Cost charged to production:
Beginning Work In Process	$15,638.00
Cost Added during period	$769,587.00
Total costs to account for	$785,225.00
Total costs accounted for	$785,225.00
Difference due to rounding cost per unit	$0.00
Units reconciliation:
Units to accounts for:
Beginning WIP	6000
Units started	22000
Total units to account for	28000
Total units accounted for:
Units completed and transferred out	21000
Units in ending WIP	7000
Total units accounted for	28000

Ashad Company Production cost Report
Particulars	Units	% Materials	Material	% Conversion	Conversion
Equivalent units of production - Weighted Average method
Unit completed & Transferred out	21000	100%	21000	100%	21000
Ending Work In Proces	7000	100%	7000	25%	1750
Equivalent units of production	28000		28000		22750
Cost per equivalent unit of production			Material		Conversion
Beginning Work In Process			$4,880.00		$10,758.00
Cost added during the period			$373,120.00		$396,467.00
Total costs		Cost	$378,000.00	Cost	$407,225.00
Equivalent units of production		EUP	28000	EUP	22750
Cost per equivalent unit			$13.50		$17.90
Cost Assignment and Reconciliation:
Cost of unit transferred out	EUP	Cost per EUP	Total Cost
Direct materials	21000	$13.50	$283,500.00
Conversion	21000	$17.90	$375,900.00
Total costs transferred out			$659,400.00
Cost of ending work in process
Direct materials	7000	$13.50	$94,500.00
Conversion	1750	$17.90	$31,325.00
Total Cost of ending work in process			$125,825.00
Total costs accounted for			$785,225.00