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ID: 2336855 • Letter: #
Question
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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.
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Equivalent Units of Production Direct Materials Conversion Units transferred out 44,000 EUP 44,000 EUP Units of ending work in process 4,000 EUP 2,400 EUP Equivalent units of production 48,000 EUP 46,400 EUPExplanation / Answer
Total costs to account for: Costs of beginning work in process 45600 Costs incurred this period 916800 Total costs to account for 962400 Total costs accounted for 962400 Difference due to rounding cost/unit 0 Unit reconciliation: Units to account for: Beginning work in process inventory 3500 Units started this period 44500 Total units to account for 48000 Total units accounted for: Units completed and transferred out 44000 Ending work in process 4000 Total units accounted for 48000 Equivalent units of production (EUP)- weighted average method Units %Materials EUP-Materials %Conversion EUP-Conversion Units completed and transferred out 44000 100% 44000 100% 44000 Ending work in process 4000 100% 4000 60% 2400 Total units 48000 48000 46400 Cost per equivalent unit of production Materials Conversion Cost of beginning work in process 40350 5250 Costs incurred this period 574050 342750 Total costs 614400 348000 ÷ Equivalent units of production 48000 46400 Cost per equivalent unit of production 12.8 7.50 Cost Assignment and Reconciliation Cost of units transferred out EUP Cost per EUP Total cost Direct materials 44000 12.8 563200 Conversion 44000 7.5 330000 Total cost transferred out 893200 EUP Cost per EUP Total cost Cost of ending work in Process Direct materials 4000 12.8 51200 Conversion 2400 7.5 18000 Total Cost of ending work in Process 69200 Total cost accounted for 962400
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