The following partially completed process cost summary describes the July produc
ID: 2333888 • Letter: T
Question
The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. 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 Direct Materials Conversion Units transferred out 42,000 EUP 42,000 EUP Units of ending work in process 3,500 EUP 2,100 EUP Equivalent units of production 45,500 EUP 44,100 EUP
Explanation / Answer
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
42,000
100%
42,000
100%
42,000
Closing WIP
3,500
100%
3,500
60%
2,100
Total
45,500
Total
45,500
Total
44,100
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 32,950.00
$ 4,260.00
$ 37,210.00
Cost incurred during period
$ 531,250.00
$ 308,850.00
$ 840,100.00
Total Cost to be accounted for
$ 564,200.00
$ 313,110.00
$ 877,310.00
Total Equivalent Units
45,500
44,100
Cost per Equivalent Units
$ 12.4000
$ 7.1000
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 12.40
3,500
$ 43,400.00
42,000
$ 520,800.00
Conversion Cost
$ 7.10
2,100
$ 14,910.00
42,000
$ 298,200.00
TOTAL
$ 877,310.00
TOTAL
$ 58,310.00
TOTAL
$ 819,000.00
Cost to be accounted for
Beginning Work In Progress:
Material
$ 32,950.00
Conversion Cost
$ 4,260.00
$ 37,210.00
Cost incurred during period:
Material
$ 531,250.00
Conversion Cost
$ 308,850.00
$ 840,100.00
Total Cost to be accounted for
$ 877,310.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Cost Transferred
-
$ -
Material
42,000
$ 12.40
$ 520,800.00
Conversion Cost
42,000
$ 7.10
$ 298,200.00
$ 819,000.00
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Cost Transferred
-
$ -
$ -
Material
3,500
$ 12.40
$ 43,400.00
Conversion Cost
2,100
$ 7.10
$ 14,910.00
$ 58,310.00
Total Cost accounted for
$ 877,310.00
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
42,000
100%
42,000
100%
42,000
Closing WIP
3,500
100%
3,500
60%
2,100
Total
45,500
Total
45,500
Total
44,100
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