Question

Required information (The following information applies to the questions displayed below.] 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 Direct Materials Conversion 42,000 EUP 42,000 EUP 3,500 EUP 2,100 EUP 45,500 EUP 44,100 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 32,950 531,250 $ 564,200 Conversion $ 4,260 308,850 $313, 110 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 pleted during July 3,000 42,500 42,000 3,500

Answer 1

Answer

Total Cost to account for:
Cost of beginning WIP	$                      37,210.00
Costs incurred this period	$                    840,100.00
Total Cost to account for	$                    877,310.00
Total costs accounted for	$                    877,310.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	42,500
Total Units to account for	45,500
Total Units accounted for:
Completed & Transferred out	42,000
Ending WIP	3,500
Total Units accounted for	45,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	42,000	100%	42,000	100%	42,000
Units of ENDING WIP	3,500	100%	3,500	60%	2,100
Equivalent Units of Production			45,500		44,100
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          32,950.00		$                                    4,260.00
Cost incurred during the period			$        531,250.00		$                                308,850.00
Total Costs		Costs	$        564,200.00	Costs	$                                313,110.00
Equivalent units of production		EUP	45,500	EUP	44,100
Cost per EUP			$            12.40000		$                                      7.10000

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	42,000	$                    12.40	$        520,800.00
- Conversion	42,000	$                      7.10	$        298,200.00
Total Cost transferred Out				$            819,000.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,500	$                    12.40	$          43,400.00
- Conversion	2,100	$                      7.10	$          14,910.00
Total cost of ending WIP				$              58,310.00
Total costs accounted for					$                                877,310.00