The following partially completed process cost summary describes the July produc
ID: 2482367 • 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 38,500 38,500 Units of ending work in process 3,800 2,280 Equivalent units of production 42,300 40,780 Costs per EUP Direct Materials Conversion Costs of beginning work in process $ 24,400 $ 2,865 Costs incurred this period 521,270 217,347 Total costs $ 545,670 $ 220,212
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Units in beginning work in process(all completed during July) 3,300 Units started this period 39,000 Units completed and transferred out 38,500 Units in ending work in process 3,800
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Explanation / Answer
Costs Charged to Production
Costs of beginning goods in process
$20,830.00
Costs incurred this period
5,46,170.00
Total costs to account for
$567,000.00
Total costs accounted for
5,67,000.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
2,000
Units started this period
32,500
Total units to account for
34,500
Total units accounted for
Completed and transferred out
32,000
Ending goods in process
2,500
Total units accounted for
34,500
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Labor
EUP- Labor
% Overhead
EUP- Overhead
Units completed and transferred out
32,000
100%
32,000
100%
32,000
100%
32,000
Units of ending goods in process
2,500
100%
2,500
60%
1,500
60%
1,500
Equivalent units of production
34,500
34,500
33,500
33,500
Cost per EUP
Materials
Labor
Overhead
Cost of beginning goods in process
$18,550
$760
$1,520
Costs incurred this period
3,57,500
62,890
1,25,780
Total costs
Costs
$376,050
Costs
$63,650
Costs
$127,300
÷ Equivalent units of production
EUP
34,500
EUP
33,500
EUP
33,500
Cost per equivalent unit of production
$10.90
$1.90
$3.80
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
32,000
$10.90
$348,800.00
Direct labor
32,000
$1.90
60,800.00
Factory overhead
32,000
$3.80
1,21,600.00
Total transferred out
$531,200.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
2,500
$10.90
27,250.00
Direct labor
1,500
$1.90
2,850.00
Factory overhead
1,500
$3.80
5,700.00
Total ending goods in process
35,800.00
Total costs accounted for
$567,000.00
Costs Charged to Production
Costs of beginning goods in process
$20,830.00
Costs incurred this period
5,46,170.00
Total costs to account for
$567,000.00
Total costs accounted for
5,67,000.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
2,000
Units started this period
32,500
Total units to account for
34,500
Total units accounted for
Completed and transferred out
32,000
Ending goods in process
2,500
Total units accounted for
34,500
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Labor
EUP- Labor
% Overhead
EUP- Overhead
Units completed and transferred out
32,000
100%
32,000
100%
32,000
100%
32,000
Units of ending goods in process
2,500
100%
2,500
60%
1,500
60%
1,500
Equivalent units of production
34,500
34,500
33,500
33,500
Cost per EUP
Materials
Labor
Overhead
Cost of beginning goods in process
$18,550
$760
$1,520
Costs incurred this period
3,57,500
62,890
1,25,780
Total costs
Costs
$376,050
Costs
$63,650
Costs
$127,300
÷ Equivalent units of production
EUP
34,500
EUP
33,500
EUP
33,500
Cost per equivalent unit of production
$10.90
$1.90
$3.80
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
32,000
$10.90
$348,800.00
Direct labor
32,000
$1.90
60,800.00
Factory overhead
32,000
$3.80
1,21,600.00
Total transferred out
$531,200.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
2,500
$10.90
27,250.00
Direct labor
1,500
$1.90
2,850.00
Factory overhead
1,500
$3.80
5,700.00
Total ending goods in process
35,800.00
Total costs accounted for
$567,000.00
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