Question

Samod Seve 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 33,000 EUP 3,500 EUP 36,500 EUP 33,000 EUP 2,100 EUP 35,100 EUP Costs per EUP Costs of beginning work in pro Costs incurred this period Total costs Direct Materials $ 28,450 358.450 $ 386,900 Conversion $ 3.10 1 82.850 $ 156,030 Units in beginning work in process (all completed duri Units started this period Units completed and transferred out Units In ending work in process 3,000 33.500 33.000 3.500 < Prev 3 of 3

Answer 1

Solution:

Cost charged to production:
Beginning Work In Process	$31,550.00
Cost Added during period	$541,300.00
Total costs to account for	$572,850.00
Total costs accounted for	$572,850.00
Difference due to rounding cost per unit	$0.00
Units reconciliation:
Units to accounts for:
Beginning WIP	3000
Units started	33500
Total units to account for	36500
Total units accounted for:
Units completed and transferred out	33000
Units in ending WIP	3500
Total units accounted for	36500

Ashad Company Production cost Report
Particulars	Units	% Materials	Material	% Conversion	Conversion
Equivalent units of production - Weighted Average method
Unit completed & Transferred out	33000	100%	33000	100%	33000
Ending Work In Proces	3500	100%	3500	60%	2100
Equivalent units of production	36500		36500		35100
Cost per equivalent unit of production			Material		Conversion
Beginning Work In Process			$28,450.00		$3,100.00
Cost added during the period			$358,450.00		$182,850.00
Total costs		Cost	$386,900.00	Cost	$185,950.00
Equivalent units of production		EUP	36500	EUP	35100
Cost per equivalent unit			$10.60		$5.30
Cost Assignment and Reconciliation:
Cost of unit transferred out	EUP	Cost per EUP	Total Cost
Direct materials	33000	$10.60	$349,800.00
Conversion	33000	$5.30	$174,824.79
Total costs transferred out			$524,624.79
Cost of ending work in process
Direct materials	3500	$10.60	$37,100.00
Conversion	2100	$5.30	$11,125.21
Total Cost of ending work in process			$48,225.21
Total costs accounted for			$572,850.00