Question

HOW DO I CALCULATE?

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. Direct Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Materials 33,500 EUP 33,500 EUP 4,000 EUP 2,400 EUP 37,500 EUP 35,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 34,050 367,200 $ 401,250 Conversion $ 3,780 190,080 $ 193,860 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 34,000 33,500 4,000

Answer 1

Answer

Costs Charged to Production:
Cost of beginning WIP	$                       37,830.00
Costs incurred this period	$                     557,280.00
Total Cost to account for	$                     595,110.00
Total costs accounted for	$                     595,110.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,500
Units started this period	34,000
Total Units to account for	37,500
Total Units accounted for:
Completed & Transferred out	33,500
Ending WIP	4,000
Total Units accounted for	37,500

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	4,000	100.0%	4,000	60.0%	2,400
Units STARTED & COMPLETED	30,000	100%	30,000	100%	30,000
Units of beginning WIP	3,500	0.00%	-	80.00%	2,800
Equivalent Units of Production			34,000		35,200
COST per EUP			Material		Conversion
Cost incurred this period			$       367,200.00		$                  190,080.00
Total Costs		Costs	$       367,200.00	Costs	$                  190,080.00
Equivalent units of production		EUP	34,000	EUP	35,200
Cost per EUP			$           10.80000		$                          5.4000

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			37,830.00
Cost to complete beginning WIP-
- Direct Materials	-	10.80	-
- Conversion	2,800.00	5.40	15,120.00
Total cost to complete beginning WIP			52,950.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	30,000.00	10.80	324,000.00
- Conversion	30,000.00	5.40	162,000.00
Total costs started & Completed this period			486,000.00
Total cost of work finished this period				538,950.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,000	$                            10.80	$          43,200.00
- Conversion	2,400	$                              5.40	$          12,960.00
Total cost of ending WIP				$               56,160.00
Total costs accounted for				$             595,110.00