Question

Use the following information for the Exercises below.

[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	Direct Materials			Conversion
Units transferred out		33,000	EUP		33,000	EUP
Units of ending work in process		3,500	EUP		2,100	EUP
Equivalent units of production		36,500	EUP		35,100	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	28,450			$	3,180
Costs incurred this period			358,450				182,850
Total costs		$	386,900			$	186,030

Units in beginning work in process (all completed during July)	3,000
Units started this period	33,500
Units completed and transferred out	33,000
Units in ending work in process	3,500

Exercise 16-12 Weighted average: Completing a process cost summary LO C3

Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Answer

• Requirement as asked

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 Costs to Account for:
Beginning Inventory - Direct Material cost	$                      28,450.00
Beginning Inventory - Conversion cost	$                         3,180.00
Cost incurred suring the period - Direct material cost	$                    358,450.00
Cost incurred suring the period - Conversion cost	$                    182,850.00
Total costs to account for:	$                    572,930.00
Total costs accounted for	$                    572,930.00
Difference due to rounding cost/unit	$                                      -

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