Question

Required information [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. Units transferred out Units of ending work in process Equivalent units of production 32,000 EUP 32,000 EUP 2500 EUP1,500 EUP 34,500 EUP 33,500 EUP Direct Costs of beginning work in prooess Costs incurred this period Total costs 18,550 $ 2,280 357 500188 670 s 376,050 190,950 Units in beginning work in prooess (all completed durng Juity) Units started this period Units completed and transferred out Units in ending work in prooess 2,000 32,500 32,000 2,500

Answer 1

Costs charged to production
cost of beginning work in process				20,830
costs incurred this period				546,170
total costs to account for				567,000
Total costs accounted for				567,000
Difference due to rounding cost/unit				0
Unit Reconcilation
Units to account for
units in beginning work in process				2,000
units started this period				32,500
total units to account for				34,500
total units accounted for
units completed & tranferred out				32,000
units in ending work in process				2,500
total units accounted for				34,500
Equivalent units of production -(EUP)-Weighted average Method
			units	%materials	EUP-Mat	% CC	Eup-CC
units completed & tranferred out			32,000	100%	32,000	100%	32,000
units in ending work in process			2,500	100%	2,500	60%	1,500
Equivalent units of producton					34,500		33,500
Cost per EUP					Materials		CC
Cost of beginning work in process					18,550		2,280
cost incurred this period					357,500		188,670
total costs				Costs	376,050	Costs	190,950
Equivalent units of producton				EUP	34,500	EUP	33,500
Cost per Equivalent unit pf production					10.9		5.7
cost Assignment and Reconciliation
Costs transferred out				EUP	cost pu	total cost
Direct materials				32,000	10.9	348800
conversion				32,000	5.7	182400
total transferred out						531200
Cost of ending work in process
Direct materials				2,500	10.9	27250
conversion				1,500	5.7	8550
total ending work in process						35800
total costs accounted for							567000