The following partially completed process cost summary describes the July produc
ID: 2526780 • 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. Ending work in process inventory is 60% complete with respect to conversion Equivalent Units of Production Units transferred out Units of ending work in process Direct Materials 41,500 4,400 Conversion 41,500 2,640 Equivalent units of production 45,900 44,140 Direct Costs per EUP Costs of beginning work in process Costs incurred this period Is Conversion $27,100 3,135 248,463 Materials 606,320 Total costs $633,420 $ 251,598 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 3,900 42,000 41,500 4,400Explanation / Answer
Costs Charged to Production
Costs of beginning goods in process
$30,235.00
Costs incurred this period
854,783.00
Total costs to account for
$885,018.00
Total costs accounted for
885,018.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
3,900
Units started this period
42,000
Total units to account for
45,900
Total units accounted for
Completed and transferred out
41,500
Ending goods in process
4,400
Total units accounted for
45,900
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
41,500
100%
41,500
100%
41,500
Units of ending goods in process
4,400
100%
4,400
60%
2,640
Equivalent units of production
45,900
45,900
44,140
Cost per EUP
Materials
Conversion
Cost of beginning goods in process
$27,100
$3,135
Costs incurred this period
606,320
248,463
Total costs
Costs
$633,420
Costs
$251,598
÷ Equivalent units of production
EUP
45,900
EUP
44,140
Cost per equivalent unit of production
$13.80
$5.70
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
41,500
$13.80
$572,700.00
Conversion
41,500
$5.70
$236,550.00
Total transferred out
$809,250.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
4,400
$13.80
$60,720.00
Conversion
2,640
$5.70
$15,048.00
Total ending goods in process
$75,768.00
Total costs accounted for
$885,018.00
Costs Charged to Production
Costs of beginning goods in process
$30,235.00
Costs incurred this period
854,783.00
Total costs to account for
$885,018.00
Total costs accounted for
885,018.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
3,900
Units started this period
42,000
Total units to account for
45,900
Total units accounted for
Completed and transferred out
41,500
Ending goods in process
4,400
Total units accounted for
45,900
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
41,500
100%
41,500
100%
41,500
Units of ending goods in process
4,400
100%
4,400
60%
2,640
Equivalent units of production
45,900
45,900
44,140
Cost per EUP
Materials
Conversion
Cost of beginning goods in process
$27,100
$3,135
Costs incurred this period
606,320
248,463
Total costs
Costs
$633,420
Costs
$251,598
÷ Equivalent units of production
EUP
45,900
EUP
44,140
Cost per equivalent unit of production
$13.80
$5.70
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
41,500
$13.80
$572,700.00
Conversion
41,500
$5.70
$236,550.00
Total transferred out
$809,250.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
4,400
$13.80
$60,720.00
Conversion
2,640
$5.70
$15,048.00
Total ending goods in process
$75,768.00
Total costs accounted for
$885,018.00
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