[The following information applies to the questions displayed below] The followi
ID: 2339649 • Letter: #
Question
[The following information applies to the questions displayed below] 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. Conversion Units transferred out Units of ending work in process Equivalent units of production Materials 4,000 EUP 34,000 EUP 4,500 EUP 2,700 EUP 38,500 EUP 36,7ee EUP Direct Costs of beginning work in process Costs incurred this period Total costs Materials Conversi $39,7504,480 376,50197.459 415,80e 281,850 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 34,500 34,000 4,500Explanation / Answer
Answer
Total Cost to account for:
Cost of beginning WIP
$ 44,150.00
Costs incurred this period
$ 573,500.00
Total Cost to account for
$ 617,650.00
Total costs accounted for
$ 617,650.00
Difference due to rounding cost/unit
$ -
Units Reconciliation
Units to account for:
Beginning WIP
4,000
Units started this period
34,500
Total Units to account for
38,500
Total Units accounted for:
Completed & Transferred out
34,000
Ending WIP
4,500
Total Units accounted for
38,500
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
34,000
100%
34,000
100%
34,000
Units of ENDING WIP
4,500
100%
4,500
60%
2,700
Equivalent Units of Production
38,500
36,700
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 39,750.00
$ 4,400.00
Cost incurred during the period
$ 376,050.00
$ 197,450.00
Total Costs
Costs
$ 415,800.00
Costs
$ 201,850.00
Equivalent units of production
EUP
38,500
EUP
36,700
Cost per EUP
$ 10.80
$ 5.50
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
34,000
$ 10.80
$ 367,200.00
- Conversion
34,000
$ 5.50
$ 187,000.00
Total Cost transferred Out
$ 554,200.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
4,500
$ 10.80
$ 48,600.00
- Conversion
2,700
$ 5.50
$ 14,850.00
Total cost of ending WIP
$ 63,450.00
Total costs accounted for
$ 617,650.00
Total Cost to account for:
Cost of beginning WIP
$ 44,150.00
Costs incurred this period
$ 573,500.00
Total Cost to account for
$ 617,650.00
Total costs accounted for
$ 617,650.00
Difference due to rounding cost/unit
$ -
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