Question

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. Ending work in process inventory is 60% complete with respect to conversion. Equivalent Units of Production Units transferred out Units of ending work in process Direct Materials 32,000 2,500 Conversion 32,000 1,500 Equivalent units of production 34,500 33,500 Costs per EUP Costs of beginning work in process Costs incurred this period Direct Materials Conversion $ 18,550 $ 2,280 357,500 188,670 Total costs $ 376,050 $ 190,950 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 2,000 32,500 32,000 2,500 Prepare its process cost summary using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Total costs to account for:
Costs of beginning work in process	20830
Costs incurred this period	546170
Total costs to account for	567000
Total costs accounted for	567000
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	2000
Units started this period	32500
Total units to account for	34500
Total units accounted for:
Units completed and transferred out	32000
Ending work in process	2500
Total units accounted for	34500
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	32000	100%	32000	100%	32000
Ending work in process	2500	100%	2500	60%	1500
Total units	34500		34500		33500
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			18550		2280
Costs incurred this period			357500		188670
Total costs		Costs	376050	Costs	190950
÷ Equivalent units of production		EUP	34500	EUP	33500
Cost per equivalent unit of production			10.90		5.70
Cost Assignment and Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	32000	10.90	348800
Conversion	32000	5.70	182400
Total cost transferred out				531200
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	2500	10.90	27250
Conversion	1500	5.70	8550
Total Cost of ending work in Process				35800
Total cost accounted for				567000