Question

10 Oslo Company produces large quantities of a standardized product. The following information is available for the first process in its production activities for May. 0.58 points Units Beginning work in process inventory 6,500 Started 24,500 Ending work in process inventory 8,000 Costs Beginning work in process inventory Direct materials Conversion eBook $ 5,410 12,108 $ 17,518 420,870 Hint Direct materials added Status of ending work in process inventory Materials,Percent complete Conversion-Percent complete 273,680 246,312 Print 100% Direct labor added 30% Overhead applied (90% of direct labor) Total costs to account for Ending work in process inventory $958,380 $101,975 References Prepare a process cost summary report for this process using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Solution:

Total costs to account for
Cost of Beginning Work in process	$17,518
Costs incurred this period	$9,40,862
Total Cost to account for	$9,58,380
Total Cost Accounted for	$9,58,380
*Difference due to rounding cost/unit	$0
Unit Reconciliation
Units to account for:
Units in Beginning work in process	6500
Units Started this period (26000-5200)	24500
Total Units to account for	31000
Total units Accounted for:
Units completed and transferred out	23000
Units in ending work in process	8000
Total Units accounted for	31000
Equivalent units of production (EUP) - Weighted Average method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Units transferred out	23000	100%	23000	100%	23000
units of Ending work in process	8000	100%	8000	30%	2400
Equivalent units of production			31000		25400
Cost per EUP			Material		Conversion
Cost of Beginning Work in process			$5,410		$12,108
Costs incurred this period			$4,20,870		$5,19,992
Total Costs		Costs	$4,26,280	Costs	$5,32,100
/Equivalent units of Production		EUP	31000	EUP	25400
Cost per Equivalent unit of Production			$13.75		$20.95
Cost Assignment and Reconciliation
Cost Transferred Out	EUP	Cost per EUP	Total Cost
Direct Material	23000	$13.75	$3,16,272
Conversion	23000	$20.95	$4,81,823
Total transferred out			$7,98,095
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	8000	$13.75	$1,10,008
Conversion	2400	$20.95	$50,277
Total Ending work in process			$1,60,285
Total Costs accounted for				$9,58,380