Question

The following partially completed process cost summary describes the May production activities of Raman Company. Its production output is sent to its warehouse for shipping. Equivalent units of production Units transferred out Units of ending goods in process Direct Materials 120,000 20,000 Direct Labor 120,000 12,000 Factory Overhead 120,000 12,000 Equivalent units of production 140,000 132,000 132,000 Costs per EUP Costs of beginning goods in process Costs incurred this period Direct Materials $ 36,000 692,000 Direct Labor $ 1,420 110,780 Factory Overhead $ 2,840 221,560 Total costs $728,000 $112,200 $ 224,400 Units in beginning goods in process Units started this period Units completed and transferred out Units in ending goods in process 6,000 134,000 120,000 20,000 Prepare its process cost summary using the weighted average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.)

Answer 1

Equivalent Unit pf Production (EUP)
	Direct material	Direct Labour	Factory OH
Unit transferred Out	1,20,000	1,20,000	1,20,000
Units of ending goods in process	20,000	12,000	12,000
Equivalent Unit pf Production (EUP)	1,40,000	1,32,000	1,32,000
Cost per EUP	Direct material $	Direct Labour$	Factory OH$
Cost of beginning goods in process	36,000	1,420	2,840
cost incurred this period	6,92,000	1,10,780	2,21,560
Total cost	7,28,000	1,12,200	2,24,400
Units Beginning goods in process	6,000
Units started this period	1,34,000
Units competed and transferred	1,20,000
Units in ending good in proces	20,000
RAMANA Company
Process cost summary
for the month end May 31
Cost charged to the production	Amnt ($)
Cost of beginning goods in process as per Question above)	40,260
$36000+$1420+$2840
cost incurred this period as per Question above)	10,24,340
$692000+$110780$221560
Total cost accounted	10,64,600
Unit cost Information
Units Beginning goods in process	6,000	Units competed and transferred			1,20,000
Units started this period	1,34,000	Units in ending good in process			20,000
Total Unit to account for	1,40,000	Total Unit to account for			1,40,000
Equivalent Unit Production ( EUP)	Direct material $	Direct Labour$	Factory OH$
Cost of beginning goods in process	36,000	1,420	2,840
cost incurred this period	6,92,000	1,10,780	2,21,560
Total cost	7,28,000	1,12,200	2,24,400	(a)
Equivalent Unit pf Production (EUP) As above	1,40,000	1,32,000	1,32,000	(b)
Cost per Equivalent Unit of Production $/ EUP	5.20	0.85	1.70	(a/b)
Cost Assignment and Reconciliation
Cost transferred out( as above)	Unit -A	Rate $ / Unit -B	Total Value (A*B)$
Dircect material	1,20,000	5.20	6,24,000
Direct Labour	1,20,000	0.85	1,02,000
Factory OH	1,20,000	1.70	2,04,000
Cost transferred out Total			9,30,000	A
Units of ending goods in process( as above)	Unit -A	Rate $ / Unit -B	Total Value (A*B)$
Dircect material	20,000	5.20	1,04,000
Direct Labour	12,000	0.85	10,200
Factory OH	12,000	1.70	20,400
Total cost of ending goods in process			1,34,600	B
Total cost accounted for (A+B)			10,64,600