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. Direct Materials Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production 34,000 EUP 34,000 EUP 4,500 EUP 2,700 EUP 38,500 EUP 36,700 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 39,750 376,050 $ 415,800 Conversion $ 4,400 197,450 $ 201,850 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 4,000 34,500 34,000 4,500 Prepare its process cost summary using the FIFO method. (Round "Cost per EUP" to 2 decimal places.) Costs Charged to Production Cost of beginning work in process Costs incurred this period Total costs to account for Total costs accounted for * Difference due to rounding cost/unit $ 44,150.00 573,500.00 $ 617,650.00 $ 0.00

Answer 1

Costs Charged to Production
Costs of beginning goods in process 39750+4400	44,150
Costs incurred this period 376050+197450	573,500
Total costs to account for	617,650
Total costs accounted for	617,650
*Difference due to rounding cost/unit	-
Unit reconciliation
Units to account for
Beginning goods in process	4,000
Units started this period	34,500
Total units to account for	38,500
Total units accounted for
Completed and transferred out	34,000
Ending goods in process	4,500
Total units accounted for	38,500

Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	34,000	100%	34,000	100%	32,000
Units of ending goods in process	4,500	100%	4,500	60%	2,700
Equivalent units of production	38,500		38,500		34,700
Cost per EUP			Materials		Conversion
Cost of beginning goods in process			$39,750		$4,400
Costs incurred this period			376,050		197,450
Total costs		Costs	$415,800	Costs	$201,850
÷  Equivalent units of production		EUP	38,500	EUP	34,700
Cost per equivalent unit of production			$10.80		$5.82
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Direct materials	34,000	$10.80	$367,200.00
Conversion	32,000	$5.82	$186,144.09
Total transferred out				$553,344.09
Costs of ending goods in process	EUP	Cost per EUP	Total cost
Direct materials	4,500	$10.80	48,600.00
Direct labor	2,700	$5.82	15,705.91
Factory overhead
Total ending goods in process				64,305.91
Total costs accounted for				$617,650.00