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. Al 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 36,500 EUP 36,500 EUP 4.000 EUP 2.400 EUP 40,500 EUP 38,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 35,85e $ 4,200 421, see 229,200 $457,650 $233,40 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 4,020 Prepare its process cost summary using the FIFO method. Round "Cost per EUP" to 2 decimal places.) Costs Charged to Production Total costs to account for Total costs accounted for Difference due to rounding costunit Unit reconciliation Units to account for Total units to account for Total units accounted for Total units accounted for Equivalent units of production (EUP) - FIFO method Units Materials EUP Materials Conversion EUP Conversion Total Cost per EUP Materials Conversion Total costs - Equivalent units of production Cost per LUP rounded to 2 decimals) Cost assignment and reconciliation Costa EUP Costs EUP

Answer 1

Solution:

FIFO
Cost Charged to production
Total Cost of Beginning Work in process	$40,050
Total Costs incurred this period	$6,51,000
Total Cost to account for	$6,91,050
Total Cost Accounted for	$6,91,050
*Difference due to rounding cost/unit	$0
Unit 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 in Beginning work in process completed	3500
Units Started and Completed	33000
Units in ending work in process	4000
Total Units accounted for	40500
Equivalent units of production (EUP) - FIFO method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Beginning units completed this period (A)	3500	0%	0	80%	2800
Units Started and Completed (450000-100000) (B)	33000	100%	33000	100%	33000
units of Ending work in process (D)	4000	100%	4000	60%	2400
Equivalent units of production (C+D)			37000		38200
Cost per EUP			Material		Conversion
Costs incurred this period (Total Costs)		Costs	$4,21,800	Costs	$2,29,200
/Equivalent units of Production		EUP	37000	EUP	38200
Cost per Equivalent unit of Production			$11.40		$6.00
Cost Assignment and Reconciliation
Beginning Inventory Cost:				$40,050
Cost to Complete Beginning Inventory	EUP	Cost per EUP	Total Cost
Direct materials	0	$11.40	$0
Conversion	2800	$6.00	$16,800
Total Cost to complete Beginning Inventory				$16,800
Total Costs of units in Beginning Inventory				$56,850
Cost of units started and completed	EUP	Cost per EUP	Total Cost
Direct Material	33000	$11.40	$3,76,200
Conversion	33000	$6.00	$1,98,000
Total Cost of units started and completed				$5,74,200
Total cost of units transferred out				$6,31,050
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Direct Material	4000	$11.40	$45,600
Conversion	2400	$6.00	$14,400
Total Ending work in process				$60,000
Total Costs accounted for				$6,91,050