Question

The following partially completed process cost summary describes the July production activities of ashad company

alue: ..00 points 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. Ending work in process inventory is 60% complete with respect to conversion Equivalent Units of Production Units transferred out Units of ending work in process Direct Materials 32,000 2,500 Conversion 32,000 1,500 Equivalent units of production 34,500 33,500 Costs per EUP Costs of beginning work in process Costs incurred this period Direct Materials $ 18,550 357,500 Conversion $ 2.280 188,670 Total costs $ 376,050 $ 190,950 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 2.000 32.500 32,000 2,500 Prepare its process cost summary using the weighted average method (Round "Cost per Eup to 2 decimal places.) MacBook Air

Answer 1

Unit Information
Unit in beginning	2,000		Units transferred Out	32,000
Units transferred in during the period	32,500		Ending WIP	2,500
Total Units accounted for	34,500		Less opening WIP	(2,000)
			Units transferred in	32,500
			Equivalent units
Units Accounted For			Material	Conversion
Units completed and transferred out	32,000		32,000	32,000	Weighted average
Units in ending WIP	2,500		2,500	1,500	Material 100% and Conversion-60%
Total Units accounted for	34,500		34,500	33,500
Cost Information			Material	Conversion	Total
The cost of work in process beginning			18,550	2,280	20,830
The cost incurred during the period			357,500	188,670	546,170
Total Cost to account for			376,050	190,950	567,000
Total units			34,500	33,500
Cost per Equivalent unit-Total cost/Total Units			10.90	5.70
Cost accounted for
Completed and transferred out-Equivalent Units	32,000	@10.90 & @ 5.70	348,800	182,400	531,200
Closing WIP- Equivalent Units-Material	2,500	@10.90	27,250	-	27,250	Material 100% and Conversion-60%
Closing WIP- Equivalent Units-Conversion	1,500	@ 5.70	-	8,550	8,550	Material 100% and Conversion-60%
Total			376,050	190,950	567,000