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 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. Equivalent units of Production Units transferred out Units of ending work in process Equivalent units of production Direct Conversion Materials 33,000 EUP 33,000 EUP 3,500 EUP 36,500 EUP 35,100 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 28,450 $ 3,180 358,450 182,850 $ 386,900 $ 186,030 11 completed during 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 3,000 33,500 33,000 3,500
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Answer

• Weighted Average

Total Cost to account for:
Cost of beginning WIP	$                      31,630.00
Costs incurred this period	$                    541,300.00
Total Cost to account for	$                    572,930.00
Total costs accounted for	$                    572,930.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	33,500
Total Units to account for	36,500
Total Units accounted for:
Completed & Transferred out	33,000
Ending WIP	3,500
Total Units accounted for	36,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	33,000	100%	33,000	100%	33,000
Units of ENDING WIP	3,500	100%	3,500	60%	2,100
Equivalent Units of Production			36,500		35,100
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          28,450.00		$                                    3,180.00
Cost incurred during the period			$        358,450.00		$                                182,850.00
Total Costs		Costs	$        386,900.00	Costs	$                                186,030.00
Equivalent units of production		EUP	36,500	EUP	35,100
Cost per EUP			$            10.60000		$                                      5.30000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	33,000	$                    10.60	$        349,800.00
- Conversion	33,000	$                      5.30	$        174,900.00
Total Cost transferred Out				$            524,700.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,500	$                    10.60	$          37,100.00
- Conversion	2,100	$                      5.30	$          11,130.00
Total cost of ending WIP				$              48,230.00
Total costs accounted for					$                                572,930.00

• FIFO Method

Costs Charged to Production:
Cost of beginning WIP	$                       31,630.00
Costs incurred this period	$                     541,300.00
Total Cost to account for	$                     572,930.00
Total costs accounted for	$                     572,930.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	33,500
Total Units to account for	36,500
Total Units accounted for:
Completed & Transferred out	33,000
Ending WIP	3,500
Total Units accounted for	36,500

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	3,500	100.0%	3,500	60.0%	2,100
Units STARTED & COMPLETED	30,000	100%	30,000	100%	30,000
Units of beginning WIP	3,000	0.00%	-	80%	2,400
Equivalent Units of Production			33,500		34,500
COST per EUP			Material		Conversion
Cost incurred this period			$       358,450.00		$                  182,850.00
Total Costs		Costs	$       358,450.00	Costs	$                  182,850.00
Equivalent units of production		EUP	33,500	EUP	34,500
Cost per EUP			$           10.70000		$                          5.3000
COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			31,630.00
Cost to complete beginning WIP-
- Direct Materials	-	10.70	-
- Conversion	2,400.00	5.30	12,720.00
Total cost to complete beginning WIP			44,350.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	30,000.00	10.70	321,000.00
- Conversion	30,000.00	5.30	159,000.00
Total costs started & Completed this period			480,000.00
Total cost of work finished this period				524,350.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	3,500	$                            10.70	$          37,450.00
- Conversion	2,100	$                              5.30	$          11,130.00
Total cost of ending WIP				$               48,580.00
Total costs accounted for				$             572,930.00