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 36,000 EUP 3,500 EUP 39,500 EUP Conversion 36,000 EUP 2,100 EUP 38,100 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 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 Units in ending work in process pour condities bringe 3,000 36,500 36,000 3,500 Prepare its process cost summary using the weighted average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Answer

• Weighted Average

Total Cost to account for:
Cost of beginning WIP	$                      33,490.00
Costs incurred this period	$                    633,700.00
Total Cost to account for	$                    667,190.00
Total costs accounted for	$                    667,190.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	36,500
Total Units to account for	39,500
Total Units accounted for:
Completed & Transferred out	36,000
Ending WIP	3,500
Total Units accounted for	39,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	36,000	100%	36,000	100%	36,000
Units of ENDING WIP	3,500	100%	3,500	60%	2,100
Equivalent Units of Production			39,500		38,100
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          29,950.00		$                                    3,540.00
Cost incurred during the period			$        412,450.00		$                                221,250.00
Total Costs		Costs	$        442,400.00	Costs	$                                224,790.00
Equivalent units of production		EUP	39,500	EUP	38,100
Cost per EUP			$            11.20000		$                                      5.90000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	36,000	$                    11.20	$        403,200.00
- Conversion	36,000	$                      5.90	$        212,400.00
Total Cost transferred Out				$            615,600.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,500	$                    11.20	$          39,200.00
- Conversion	2,100	$                      5.90	$          12,390.00
Total cost of ending WIP				$              51,590.00
Total costs accounted for					$                                667,190.00

• FIFO Method

Costs Charged to Production:
Cost of beginning WIP	$                       33,490.00
Costs incurred this period	$                     633,700.00
Total Cost to account for	$                     667,190.00
Total costs accounted for	$                     667,190.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,000
Units started this period	36,500
Total Units to account for	39,500
Total Units accounted for:
Completed & Transferred out	36,000
Ending WIP	3,500
Total Units accounted for	39,500

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	3,500	100.0%	3,500	60.0%	2,100
Units STARTED & COMPLETED	33,000	100%	33,000	100%	33,000
Units of beginning WIP	3,000	0.00%	-	80.00%	2,400
Equivalent Units of Production			36,500		37,500
COST per EUP			Material		Conversion
Cost incurred this period			$       412,450.00		$                  221,250.00
Total Costs		Costs	$       412,450.00	Costs	$                  221,250.00
Equivalent units of production		EUP	36,500	EUP	37,500
Cost per EUP			$           11.30000		$                          5.9000

Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			33,490.00
Cost to complete beginning WIP-
- Direct Materials	-	11.30	-
- Conversion	2,400.00	5.90	14,160.00
Total cost to complete beginning WIP			47,650.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	33,000.00	11.30	372,900.00
- Conversion	33,000.00	5.90	194,700.00
Total costs started & Completed this period			567,600.00
Total cost of work finished this period				615,250.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	3,500	$                            11.30	$         39,550.00
- Conversion	2,100	$                              5.90	$          12,390.00
Total cost of ending WIP				$               51,940.00
Total costs accounted for				$             667,190.00