Question

Clee 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. Direct Conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production Materials 39,500 EUP 39,500 EUP 4,000 EUP 2,400 EUP 43,500 EUP 41,900 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 37,650 480,000 $ 517,650 Conversion $ 4,620 271,920 $ 276,540 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 leted during July 3,500 40,000 39,500 4,000 10500 Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.) Costs Charged to Production

Answer 1

Answer

• Weighted Average

Total Cost to account for:
Cost of beginning WIP	$                      42,270.00
Costs incurred this period	$                    751,920.00
Total Cost to account for	$                    794,190.00
Total costs accounted for	$                    794,190.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,500
Units started this period	40,000
Total Units to account for	43,500
Total Units accounted for:
Completed & Transferred out	39,500
Ending WIP	4,000
Total Units accounted for	43,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	39,500	100%	39,500	100%	39,500
Units of ENDING WIP	4,000	100%	4,000	60%	2,400
Equivalent Units of Production			43,500		41,900
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          37,650.00		$                                    4,620.00
Cost incurred during the period			$        480,000.00		$                                271,920.00
Total Costs		Costs	$        517,650.00	Costs	$                                276,540.00
Equivalent units of production		EUP	43,500	EUP	41,900
Cost per EUP			$            11.90000		$                                      6.60000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	39,500	$                    11.90	$        470,050.00
- Conversion	39,500	$                      6.60	$        260,700.00
Total Cost transferred Out				$            730,750.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	4,000	$                    11.90	$          47,600.00
- Conversion	2,400	$                      6.60	$          15,840.00
Total cost of ending WIP				$              63,440.00
Total costs accounted for					$                                794,190.00

• FIFO Method

Costs Charged to Production:
Cost of beginning WIP	$                       42,270.00
Costs incurred this period	$                     751,920.00
Total Cost to account for	$                     794,190.00
Total costs accounted for	$                     794,190.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,500
Units started this period	40,000
Total Units to account for	43,500
Total Units accounted for:
Completed & Transferred out	39,500
Ending WIP	4,000
Total Units accounted for	43,500

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	36,000	100%	36,000	100%	36,000
Units of beginning WIP	3,500	0.00%	-	80.00%	2,800
Equivalent Units of Production			40,000		41,200
COST per EUP			Material		Conversion
Cost incurred this period			$       480,000.00		$                  271,920.00
Total Costs		Costs	$       480,000.00	Costs	$                  271,920.00
Equivalent units of production		EUP	40,000	EUP	41,200
Cost per EUP			$           12.00000		$                          6.6000
COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			42,270.00
Cost to complete beginning WIP-
- Direct Materials	-	12.00	-
- Conversion	2,800.00	6.60	18,480.00
Total cost to complete beginning WIP			60,750.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	36,000.00	12.00	432,000.00
- Conversion	36,000.00	6.60	237,600.00
Total costs started & Completed this period			669,600.00
Total cost of work finished this period				730,350.00