Oslo Company produces large quantities of a standardized product. The following

Question

Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May Units Beginning work in process inventory Started Ending work in process inventory Costs Beginning work in process inventory 4,000 12,000 3,000 Direct materials Conversion $ 2,880 5,358 $ 8,238 197,120 123,680 111,312 Status of ending work in process inventory Materials-Percent complete Conversion Percent complete 100 % 25 % Direct materials added Direct labor added Overhead applied (90% of direct labor) Total costs to account for S 440,350 Ending work in process inventory S 50,610 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. (Round "Cost per EUP" to 2 decimal places.)

Explanation / Answer

Total costs to account for: Costs of beginning work in process 8238 Costs incurred this period 432112 Total costs to account for 440350 Total costs accounted for 440350 Difference due to rounding cost/unit 0 Unit reconciliation: Units to account for: Beginning work in process inventory 4000 Units started this period 12000 Total units to account for 16000 Total units accounted for: Units completed and transferred out 13000 Ending work in process 3000 Total units accounted for 16000 Equivalent units of production (EUP)- weighted average method Units %Materials EUP-Materials %Conversion EUP-Conversion Units completed and transferred out 13000 100% 13000 100% 13000 Ending work in process 3000 100% 3000 25% 750 Total units 16000 16000 13750 Cost per equivalent unit of production Materials Conversion Cost of beginning work in process 2880 5358 Costs incurred this period 197120 234992 Total costs 200000 240350 ÷ Equivalent units of production 16000 13750 Cost per equivalent unit of production 12.5 17.48 Total cost accounted for: Cost of units transferred out EUP Cost per EUP Total cost Direct materials 13000 12.5 162500 Convesrion 13000 17.48 227240 Total cost transferred out 389740 EUP Cost per EUP Total cost Cost of ending work in Process Direct materials 3000 12.5 37500 Convesrion 750 17.48 13110 Total Cost of ending work in Process 50610 Total cost accounted for 440350

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