Question

Required information 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 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 its transferred out 1. TOP uivalent units of production < P 3 5 Ne > band Windows

Answer 1

Total costs to account for:
Costs of beginning work in process	28550
Costs incurred this period	714920
Total costs to account for	743470
Total costs accounted for	743470
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	2500
Units started this period	39000
Total units to account for	41500
Total units accounted for:
Units completed and transferred out	38500
Ending work in process	3000
Total units accounted for	41500
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	38500	100%	38500	100%	38500
Ending work in process	3000	100%	3000	60%	1800
Total units	41500		41500		40300
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			25350		3200
Costs incurred this period			460200		254720
Total costs		Costs	485550	Costs	257920
÷ Equivalent units of production		EUP	41500	EUP	40300
Cost per equivalent unit of production			11.70		6.40
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	38500	11.70	450450
Conversion	38500	6.40	246400
Total cost transferred out				696850
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	3000	11.70	35100
Conversion	1800	6.40	11520
Total Cost of ending work in Process				46620
Total cost accounted for				743470