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. Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Direct Materials 34,500 EUP 2,000 EUP 36,500 EUP 34,500 EUP 1,200 EUP 35, 700 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 12,850 385,000 $397,850 Conversion $ 1,680 198, 240 $199,920 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 1,500 35,000 34,500 2,000

Answer 1

Total cost to Account fr:
Cost of Beginning WIP		14530
Current cost incurred		583240
Total cost to Account fr:		597770
Total cost accounted fr		597770
Difference		0
UNITS TO ACCOUNT FOR:
Beginning Work in Process units			1500
Add: Units Started in Process			35000
Total Units to account for:			36500
UNITS TO BE ACCOUNTED FOR:
Units Completed and Transferred out			34500
Ending Work in Process			2000
Total Units to be accounted for:			36500
Equivalent Units:
	UNITS	Material Cost		Conversion
		% Completion	Units	% Completion	Units
Units complted from beginning WIP	1500	0%	0	80%	1200
Units started and completed	33000	100%	33000	100%	33000
Ending Work in Process	2000	100%	2000	60%	1200
Total Equivalent units	36500		35000		35400
TOTAL COST TO ACCOUNT FOR:
		Material		Conversion
Cost Added during May		385000		198240
Total Cost to account for:		385000		198240
Equivalent Units		35000		35400
Cost per Equivalent unit		11		5.6
TOTAL COST ACCOUNTED FOR:
Units completed from beginning WIP(1500 units)
		Equivalent unit	Cost per EU	Total Cost
Beginning Cost				14530
Material		0	11	0
Conversion Cost		1200	5.6	6720
Cost of Units completed from Beginning WIP				21250
Units Started and completed (33000 units)
		Equivalent unit	Cost per EU	Total Cost
Material		33000	11	363000
Conversion Cost		33000	5.6	184800
Total Cost of Units completed and transferred out:				547800
Cost of Units transferred out (34500 units)				569050
Ending Work in process (2000 units)
		Equivalent unit	Cost per EU	Total Cost
Material		2000	11	22000
Conversison Cost		1200	5.6	6720
Total cost of Ending Work in process:				28720
Total cost accounted for				597770