Question

Required information Use the following information for the Exercises below. [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 Materiale Conversion 36,000 EUR 36,000 EUP 3.500 EUR 2.100 EUP 39,500 EUP 38,100 EUP Costa per TUP Coats of beginning work in process Costs incurred this period Total costo Direct Materiala $ 29,950 412.450 $442.400 Conversion $ 3,540 221,250 $ 224,790 Units in beginning work in process (all completed during July) Units started this period Units completed and transferred out Unitsin ending work in process 3,000 36,500 36.000 3,500 Exercise 16-13A FIFO: Completing a process cost summary LO C3 C4 Prepare its process cost summary using the FIFO method. (Round "Cost per EUP" to 2 decimal places.) Answer is not complete. Cocharged to Production Cotoning work in proces 33.490.00

Answer 1

*FIFO:
*It assigns the cost of the previous period's equivalent units in beginning WIP to the first units completed
and transferred out of the process, and assigns the cost of equivalent units worked on during
the current period first to complete beginning inventory, Then to start and complete new units,
and finally to units in Ending WIP inventory.
*FIFO costing method is that work done on beginning inventory before the current period is kept
separate from work done in the current period.
*Equivalent units in Beginning WIP + Equivalent units of work done in current period = Equivalent units in Beginning WIP + Equivalent units completed and transferred out in current period + Equivalent units in Ending WIP.

FIFO Step1 Total Costs to account for: Cost of Beginning WIP Cost Incurred this period Total Cost to account for: Total Cost to account for: Difference due to rounding off $ 33,490 $ 633,700 $ 667,190 $ 667,190 $ Step2 Unit Reconcilation Beginning WIP Units Started Total units accounted for: Units Completed and Transferred out Ending WIP Total units accounted for: 3,000 36,500 39,500 36,000 3,500 39,500 EUP-Material Step3 Equivalent units of production Particulars Units of Beginning Work in process Units of Completed Units of Ending Work in process Total Equivalent Units Units 3,000 33,000 3,500 39,500 % of Material 0% 100% 100% 33,000 3,500 36,500 %Conversion EUP -Conversion cost 80% 2,400 100% 33,000 60% 2,100 37,500

$ Step4 Cost per Equivalent unit of production Costs incurred this period Total Costs Div, Equivalent units Cost per Equivalent unit of production $ $ $ Costs EUP 412,450 412,450 36,500 11.30 Costs EUP 221,250 221,250 37,500 5.90 $ $ EUP Cost per EUP Total costs $ 33,490 $ 2,400 $ 11.30 $ 5.90 $ 14,160 $ 14,160 Step 5 Total costs accounted for: Cost of units transferred out: Cost of beginning work in process Cost to complete beginning work in process: Direct Materials Conversion Total Costs to complete beginning work in process Cost of units Started and Completed : Direct Materials Conversion Total Costs of started and completed this period Total cost of work finished this period Cost to Ending WIP: Direct Materials Conversion Total Costs of Ending work in process Total costs accounted for $ 33,000 33,000 11.30 $ 5.90 $ 372,900 194,700 $ $ 567,600 615,250 $ EUP Cost per EUP 3,500 $ 11.30 $ 2,100 $ 5.90 $ Total costs 39,550 12,390 $ 51,940 667,190 $

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