Question

Ch 16 Quiz in Connect i Saved 3 Required information (The following information applies to the questions displayed below. 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. 8 00:44:13 Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Direct Materials 36,500 EUP 4,000 EUP 40,500 EUP Conversion 36,500 EUP 2,400 EUP 38,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 35,850 421,800 $ 457,650 Conversion S 4,200 229, 200 $ 233,400 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 37,000 36,500 4,000

Answer 1

Units reconciliation
Units to account for
Units in beginning work in process	3500
Units started this period	37000
Total units to account for	40500
Total units accounted for
Units completed and transferred out	36500
Units in ending work in process	4000
Total units accounted for	40500
Equivalent Units of Production- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	36500	100%	36500	100%	36500
Units in ending work in process	4000	100%	4000	(2400*100/4000)= 60%	(4000*60%)= 2400
Equivalent units of production	40500		40500		38900
Cost per Equivalent Unit of Production			Materials		Conversion
Cost of beginning work in process			$35850		$4200
Cost incurred during the period			421800		229200
Total costs			$457650		$233400
Equivalent units of production			40500		38900
Cost per equivalent unit of production			$11.3		$6
Total costs to account for:
Direct materials- Prior period	$35850
Direct materials- Current period	421800
Conversion- Prior period	4200
Conversion- Current period	229200
Total cost to account for	$691050
Total cost accounted for	691050
Difference due to rounding cost/unit	$0
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	36500	$11.3	$412450
Conversion	36500	$6	$219000
Total cost transferred out				$631450
Cost of ending work in process:
Direct materials	4000	$11.3	$45200
Conversion	2400	$6	14400
Total cost of ending work in process				$59600
Total cost accounted for				$691050