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

ID: 2334079 • Letter: O

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 4,000 Beginning work in process inventory 12,000 3,000 Direct materials Conversion $ 2,880 5,358 $ 8,238 197,120 123,680 111,312 $440, 350 $ 50,616 Status of ending work in process inventory Direct materials added Materials-Percent complete Conversion-Percent complete 100% Direct labor added 25% Overhead applied (90% of direct labor) Total costs to account for Ending work in process inventory 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.) Total costs to account for: Total costs to account for Total costs accounted for Difference due to rounding cost/unit nit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for

Explanation / Answer

Answers

Total Cost to account for:

Cost of beginning WIP

$            8,238.00

Costs incurred this period

$       432,112.00

Total Cost to account for

$       440,350.00

Total costs accounted for

$       440,350.00

Difference due to rounding cost/unit

$                         -  

Units Reconciliation

Units to account for:

Beginning WIP

                     4,000

Units started this period

                   12,000

Total Units to account for

$          16,000.00

Total Units accounted for:

Completed & Transferred out

                   13,000

Ending WIP

                     3,000

Total Units accounted for

$          16,000.00

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

13,000

100%

13,000

100%

13,000

Units of ENDING WIP

3,000

100%

3,000

25%

750

Equivalent Units of Production

16,000

13,750

COST per EUP

Material

Conversion

Cost of Beginning WIP

$       2,880.00

$       5,358.00

Cost incurred during the period

$ 197,120.00

$ 234,992.00

Total Costs

Costs

$ 200,000.00

Costs

$ 240,350.00

Equivalent units of production

EUP

16,000

EUP

13,750

Cost per EUP

$             12.50

$             17.48

TOTAL COST ACCOUNTED FOR

Cost of Units Transferred Out

EUP

Cost per EUP

Total Cost

- Direct Materials

13,000

$    12.50

$ 162,500.00

- Conversion

13,000

$    17.48

$ 227,240.00

Total Cost transferred Out

$ 389,740.00

Costs of Ending WIP:

EUP

Cost per EUP

Total Cost

- Direct Materials

3,000

$    12.50

$    37,500.00

- Conversion

750

$    17.48

$    13,110.00

Total cost of ending WIP

$    50,610.00

Total costs accounted for

$ 440,350.00

Total Cost to account for:

Cost of beginning WIP

$            8,238.00

Costs incurred this period

$       432,112.00

Total Cost to account for

$       440,350.00

Total costs accounted for

$       440,350.00

Difference due to rounding cost/unit

$                         -  

Units Reconciliation

Units to account for:

Beginning WIP

                     4,000

Units started this period

                   12,000

Total Units to account for

$          16,000.00

Total Units accounted for:

Completed & Transferred out

                   13,000

Ending WIP

                     3,000

Total Units accounted for

$          16,000.00

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