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. Direct Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Materials 32,000 EUP 32,000 EUP 2,500 EUP1,500 EUP 34,500 EUP 33,500 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 18,550 $ 2,280 357,500 188,670 $376, 050 $190,950 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 2,000 32,500 32,000 2,500

Answer 1

Answer

Costs Charged to Production:
Cost of beginning WIP	$                       20,830.00
Costs incurred this period	$                     546,170.00
Total Cost to account for	$                     567,000.00
Total costs accounted for	$                     567,000.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	2,000
Units started this period	32,500
Total Units to account for	34,500
Total Units accounted for:
Completed & Transferred out	32,000
Ending WIP	2,500
Total Units accounted for	34,500

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	2,500	100.0%	2,500	60.0%	1,500
Units STARTED & COMPLETED	30,000	100%	30,000	100%	30,000
Units of beginning WIP	2,000	0.00%	-	80.00%	1,600
Equivalent Units of Production			32,500		33,100
COST per EUP			Material		Conversion
Cost incurred this period			$       357,500.00		$                  188,670.00
Total Costs		Costs	$       357,500.00	Costs	$                  188,670.00
Equivalent units of production		EUP	32,500	EUP	33,100
Cost per EUP			$           11.00000		$                          5.7000

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			20,830.00
Cost to complete beginning WIP-
- Direct Materials	-	11.00	-
- Conversion	1,600.00	5.70	9,120.00
Total cost to complete beginning WIP			29,950.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	30,000.00	11.00	330,000.00
- Conversion	30,000.00	5.70	171,000.00
Total costs started & Completed this period			501,000.00
Total cost of work finished this period				530,950.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	2,500	$                            11.00	$         27,500.00
- Conversion	1,500	$                              5.70	$            8,550.00
Total cost of ending WIP				$               36,050.00
Total costs accounted for				$             567,000.00