Question

[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 Materials 38,500 EUP 3,000 EUP 41,500 EUP Conversion 38,500 EUP 1,800 EUP 40,300 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 25,350 460,200 $ 485,550 Conversion $ 3,200 254, 720 $257,920 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 2,500 39,000 38,500 3, oee

Answer 1

Answer

Total Cost to account for:
Cost of beginning WIP	$                      28,550.00
Costs incurred this period	$                    714,920.00
Total Cost to account for	$                    743,470.00
Total costs accounted for	$                    743,470.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	2,500
Units started this period	39,000
Total Units to account for	41,500
Total Units accounted for:
Completed & Transferred out	38,500
Ending WIP	3,000
Total Units accounted for	41,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	38,500	100%	38,500	100%	38,500
Units of ENDING WIP	3,000	100%	3,000	60%	1,800
Equivalent Units of Production			41,500		40,300
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          25,350.00		$                                    3,200.00
Cost incurred during the period			$        460,200.00		$                                254,720.00
Total Costs		Costs	$        485,550.00	Costs	$                                257,920.00
Equivalent units of production		EUP	41,500	EUP	40,300
Cost per EUP			$            11.70000		$                                      6.40000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	38,500	$                    11.70	$        450,450.00
- Conversion	38,500	$                      6.40	$        246,400.00
Total Cost transferred Out				$            696,850.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,000	$                    11.70	$          35,100.00
- Conversion	1,800	$                      6.40	$          11,520.00
Total cost of ending WIP				$              46,620.00
Total costs accounted for					$                                743,470.00