Question

Exercise 3-17 Weighted Average: Process cost summary LO C3

Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May.

Units			Costs
Beginning work in process inventory	5,800		Beginning work in process inventory
Started	21,000		Direct materials	$	4,680
Ending work in process inventory	6,600		Conversion		10,218
							$	14,898
Status of ending work in process inventory			Direct materials added					354,440
Materials—Percent complete	100	%	Direct labor added					231,680
Conversion—Percent complete	20	%	Overhead applied (61% of direct labor)					141,158
			Total costs to account for				$	742,176
			Ending work in process inventory				$	87,324

Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Do not round intermediate calculations. Round "Cost per EUP" to 2 decimal places.)

Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP-Conversion Total units Cost per equivalent unit of production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Conversion Total cost of ending work in process Total costs accounted for

Answer 1

Total costs to account for:
Costs of beginning work in process	14898
Cost of goods manufactured	727278
Total costs to account for:	742176
Total costs accounted for	742176
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	5800
Units started this period	21000
Total units to account for	26800
Total units accounted for:
Units completed and transferred out	20200
Ending work in process	6600
Total units accounted for	26800
Equivalent units of production (EUP) - weighted average method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed and transferred out	20200	100%	20200	100%	20200
Ending work in process	6600	100%	6600	20%	1320
Total units			26800		21520
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			4680		10218
Costs incurred this period			354440		372838
Total costs		Costs	359120	Costs	383056
÷ Equivalent units of production		EUP	26800	EUP	21520
Cost per equivalent unit of production (rounded to 2 decimals)			13.40		17.80
Total costs accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	20200	13.40	270680
Conversion	20200	17.80	359560
Total costs transferred out			630240
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	6600	13.40	88440
Conversion	1320	17.80	23496
Total cost of ending work in process			111936
Total costs accounted for			742176