Question

[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. Conversion Units transferred out Units of ending work in process Equivalent units of production Materials 4,000 EUP 34,000 EUP 4,500 EUP 2,700 EUP 38,500 EUP 36,7ee EUP Direct Costs of beginning work in process Costs incurred this period Total costs Materials Conversi $39,7504,480 376,50197.459 415,80e 281,850 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 34,500 34,000 4,500

Answer 1

Answer

• All working forms part of the answer

Total Cost to account for:
Cost of beginning WIP	$          44,150.00
Costs incurred this period	$       573,500.00
Total Cost to account for	$       617,650.00
Total costs accounted for	$       617,650.00
Difference due to rounding cost/unit	$                         -

               

Units Reconciliation
Units to account for:
Beginning WIP	4,000
Units started this period	34,500
Total Units to account for	38,500
Total Units accounted for:
Completed & Transferred out	34,000
Ending WIP	4,500
Total Units accounted for	38,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	34,000	100%	34,000	100%	34,000
Units of ENDING WIP	4,500	100%	4,500	60%	2,700
Equivalent Units of Production			38,500		36,700
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        39,750.00		$            4,400.00
Cost incurred during the period			$      376,050.00		$        197,450.00
Total Costs		Costs	$      415,800.00	Costs	$        201,850.00
Equivalent units of production		EUP	38,500	EUP	36,700
Cost per EUP			$                10.80		$                     5.50
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	34,000	$    10.80	$      367,200.00
- Conversion	34,000	$       5.50	$      187,000.00
Total Cost transferred Out				$            554,200.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,500	$    10.80	$        48,600.00
- Conversion	2,700	$       5.50	$        14,850.00
Total cost of ending WIP				$              63,450.00
Total costs accounted for					$        617,650.00