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 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 32,000 EUP 2,500 EUP 34,500 EUP Conversion 32,000 EUP 1,500 EUP 33,500 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 18,550 357,500 $ 376,050 Conversion $ 2,280 188,670 $ 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

Answer 1

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Ashad Company
Molding Department
Weighted Average
Costs charged to production	Materials	Conversion	Total
Cost of beginning Inventory	18,550.00	2,280.00	20,830.00
Costs incurred during the month	357,500.00	188,670.00	546,170.00
Total Costs accounted for	376,050.00	190,950.00	567,000.00

Units reconciliation	Whole Units
Beginning work in process inventory	2,000.00
Add: Units stared in the month	32,500.00
Less: Ending work in process inventory	2,500.00
Total Units accounted for	32,000.00

Equivalent units of production	Whole Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed and transferred out	32,000.00	100%	32,000.00	100%	32,000.00
Ending work in process inventory	2,500.00	100%	2,500.00	60%	1,500.00
Equivalent units of production	34,500.00		34,500.00		33,500.00
Costs per EUP			Materials		Conversion
Total Costs accounted for			376,050.00		190,950.00
Equivalent units of production			34,500.00		33,500.00
Cost per Equivalent Unit of production			10.90		5.70

Costs assignment and reconciliation	EUP	Cost per EUP	Total Cost
Costs of units transferred out
Direct Materials	32,000.00	10.90	348,800.00
Conversion	32,000.00	5.70	182,400.00
Total transferred out			531,200.00
	EUP	Cost per EUP	Total Cost
Costs of ending work in process
Direct Materials	2,500.00	10.90	27,250.00
Conversion	1,500.00	5.70	8,550.00
Total costs of ending work in process			35,800.00
Total costs accounted for			567,000.00