300 points The following partiaily completed process cost summary describes the

Question

300 points The following partiaily completed process cost summary describes the July prodution activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begns. Beginning work in process inventory is 20% complete wih respect to conversion. Ending work in process nventory 60% complete with respect to conversion. Units of Production Units transferred out Units of ending work in prooess 37,000 3,500 37,000 2,100 Equivalent units of production 40,500 39,100 Direct Costs per EUP Costs of beginning work in process Costs inourred this period $ 23,0502,730 572,300 220,140 Total costs $ 595,350 $ 222,870 Units in beginning work in process (all completed during July) Units started tis period Units completed and transferred out 37,000 Units in ending work in process 3,000 37,500 3.500 Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP to 2 decimal places.) Total costs to account for os lock

Explanation / Answer

Calculation of cost per equivalent unit:

Cost of units transferred out = 37000 x 20.40 = $754800

Cost of work in process as at 31st July:

Direct materials Conversion costs Total As at 1 July $23050 $2730 $25780 Added during the month $572300 $220140 $792440 Cost to be accounted for $595350 $222870 $818220 Total equivalent units 40500 39100 Cost per equivalent unit $14.70 $5.70 $20.40

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