Question

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 Conversion 32,500 EUP 32,500 EUP 3,000 EUP 1,800 EUP 35,500 EUP 34,300 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials Conversion $ 22,950 $ 2,600 349,800 175, 760 $ 372,750 $ 178, 360 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 2,500 33,000 32,500 3,000

Prepare its process cost summary using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

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Costs Charged to Production:
Costs of beginning work in process:
Direct materials		$                        22,950
Conversion		$                           2,600	$                                                      25,550
Costs incurred this period:
Direct materials		$                      349,800
Conversion		$                      175,760	$                                                    525,560
Total costs to account for			$                                                    551,110
Unit cost information
Units to account for			Units accounted for
Beginning work in process	2,500		Completed & transferred out	32,500
Units started this period	33,000		Ending work in process	3,000
Total units to account for	35,500		Total units accounted for	35,500
		Direct Materials	Conversion
Equivalent units of production:
Units to complete beginning WIP:
Direct materials	2,500*0%	-
Conversion	2,500*80%		2,000
Units started and completed		30,000	30,000
Units of ending work in process:
Direct materials		3,000
Conversion			1,800
Equivalent units of production		33,000	33,800
	Direct Materials	Conversion
Cost per EUP
Costs incurred this period	$                      349,800	$                      175,760
EUP (from prior page)	33,000	33,800
Cost per EUP	$                           10.60	$                             5.20
Cost assignment and reconciliation
Costs transferred out:
Cost of beginning work in process			$                                                      25,550
Cost to complete beginning work in process:
Direct materials (0 EUP x $10.60 per EUP)		$                                  -
Conversion (2,000 EUP x $5.20 per EUP)		$                        10,400	$                                                      10,400
Costs of units started and completed this period:
Direct materials (30,000 EUP x $10.60 per EUP)		$                      318,000
Conversion (30,000 EUP x $5.20 per EUP)		$                      156,000	$                                                    474,000
Total cost of work finished this period			$                                                    509,950
Costs of ending work in process:
Direct materials (3,000 EUP x $10.60 per EUP)		$                        31,800
Conversion (1,800 EUP x $5.20 per EUP)		$                           9,360	$                                                      41,160
Total costs accounted for			$                                                    551,110