Question

Question #11 has 2 parts. Thank you!

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. Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Direct Materials Conversion 41,000 EUP 41,000 EUP 3,000 EUP 1,800 EUP 44,000 EUP 42,800 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 26,350 510,450 $ 536,800 Conversion 3,450 291,870 $ 295,320 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 2,500 41,500 41,000 3,000

Answer 1

$29,800.00 $802,320.00 $832,120.00 $832,120.00 $0.00 Costs Charged to Production Unit Costs Cost of beginning Work in process (26350+3450) Costs incurred this period (510450+291870) Total Cost to account for Total Cost accounted for Difference due to rounding cost/unit Unit Reconciliation Units to account for: Beginning Work in process Started into production Total Units to account for Total Units accounted for: Units completed and transferred out Ending Work in process Total Units accounted for Equivalent Units of Production (EUP)- FIFO 2500 41500 44000 41000 3000 44000) Units % Materials EUP-Materials % Conversion EUP-Conversion 0 80% 2500 38500 0% 100% 2000 38500 38500 100% Beginning Work in process Units Started and Completed (41000-2500) Ending Work in process (1800 EUP under conversion given, so % =1800/3000 = 60%) Equivalent Units of Production 3000 100% 3000 60% 1800 44000 41500 42300 Cost per EUP Costs incurred this period Total Cost to be accounted for - Equivalent units Cost per EUP (rounded to 2 decimals) Costs Materials $ 510,450 $ 510,450 41500 $12.30 Costs Conversion $ 291,870 $ 291,870 42300 $6.90 EUP EUP EUP Cost per EUP Total Cost $ 29,800 Cost Assignment and Reconciliation Costs transferred out Cost of beginning Work in process Cost to complete beginning Work in process Direct Materials Conversion 0 $12.30 $6.90 SO $13,800 2000 $13,800 EUP Total Costs to complete beginning Work in process Cost of units started and completed this period Direct Materials Conversion Total Cost of units started and completed this 38500 38500 Cost per EUP $12.30 $6.90 Total Cost $473,550 $265,650 period $739,200 782,800 $ EUP Total Cost 3000 Total Costs of work finished this period Cost of Ending Work in proces Direct Materials Conversion Total ending Work in proces Total costs accounted for Cost per EUP $12.30 $6.90 $36,900 $12,420 1800 $49,320 832,120 $ Costs Charged to Production Unit Costs Cost of beginning Work in process (26350+3450) $29,800.00 Costs incurred this period (510450+291870) $802,320.00 Total Cost to account for $832,120.00 Total Cost accounted for $832,120.00 Difference due to rounding cost/unit $0.00 Unit Reconciliation Units to account for: Beginning Work in process 2500 Started into production 41500 Total Units to account for 44000 Total Units accounted for: Units completed and transferred out (B.F.) 410001 Ending Work in process 30001 Total Units accounted for 440001 Equivalent Units of Production (EUP)- Weighted Average Method EUP- Units % Materials EUP- Materials % Conversion Conversion 41000 41000 100% 41000 100% 3000 100% 3000 60% 1800 44000 Units transferred out Work in process, Ending (1800 EUP under conversion given, so % =1800/3000 = 60%) Total units Cost per EUP Costs of beginning work in process Costs incurred this period Total Cost to be accounted for • Equivalent units Cost per EUP (rounded to 2 decimals) 44000 Materials $ 26,350 $ 510,450 $ 536,800 44000 $12.20 42800 Conversion $ 3,450 $ 291,870 $ 295,320 42800 $6.90 Costs Costs EUP EUP EUP 41000 Cost per EUP $12.20 $6.90 Total Cost $500,200 $282,900 41000 $783,100 Cost Assignment and Reconciliation Costs transferred out Direct Materials Conversion Total transferred out Cost of Ending Work in proces Direct Materials Conversion Total ending Work in proces Total costs accounted for EUP 3000 Cost per EUP $12.20 $6.90 Total Cost $36,600 $12,420 1800 $49,020 832,120 $

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