Question

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 Units transferred out Units of ending work in process Equivalent units of production Direct Materials 39,500 EUP 4,000 EUP 43,500 EUP Conversion com 39,500 EUP 2,400 EUP 41,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 37,650 480,000 $ 517,650 Conversion $ 4,620 271,920 $ 276,540 cess (all completed during July) 23,500 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 3,500 40,000 39,500 4,000 Prepare its process cost summary using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Answers

Total Cost to account for:
Cost of beginning WIP	$                      42,270.00
Costs incurred this period	$                    751,920.00
Total Cost to account for	$                    794,190.00
Total costs accounted for	$                    794,190.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,500
Units started this period	40,000
Total Units to account for	43,500
Total Units accounted for:
Completed & Transferred out	39,500
Ending WIP	4,000
Total Units accounted for	43,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	39,500	100%	39,500	100%	39,500
Units of ENDING WIP	4,000	100%	4,000	60%	2,400
Equivalent Units of Production			43,500		41,900
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          37,650.00		$                                    4,620.00
Cost incurred during the period			$        480,000.00		$                                271,920.00
Total Costs		Costs	$        517,650.00	Costs	$                                276,540.00
Equivalent units of production		EUP	43,500	EUP	41,900
Cost per EUP			$            11.90000		$                                      6.60000

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	39,500	$                    11.90	$        470,050.00
- Conversion	39,500	$                      6.60	$        260,700.00
Total Cost transferred Out				$            730,750.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	4,000	$                    11.90	$          47,600.00
- Conversion	2,400	$                      6.60	$          15,840.00
Total cost of ending WIP				$              63,440.00
Total costs accounted for					$                                794,190.00