Oslo Company produces large quantities of a standardized product. The following
ID: 2526784 • Letter: O
Question
Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May. Units Beginning work in process inventory Started Ending work in process inventory Costs Beginning work in process inventory 5,700 20,500 6,400 Direct materials Conversion $ 4,580 9,948 $14,528 345,190 225,680 149,902 Status of e nding work in process inventory Materials-Percent complete ConversionPercent complete 100 % 30 % Direct materials added Direct labor added Overhead applied (66.42% of direct labor) Total costs to account for $735,300 Ending work in process inventory $84,508Explanation / Answer
Costs Charged to Production
Costs of beginning goods in process
$14,528.00
Costs incurred this period
720,772.00
Total costs to account for
$735,300.00
Total costs accounted for
735,300.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
5,700
Units started this period
20,500
Total units to account for
26,200
Total units accounted for
Completed and transferred out
19,800
Ending goods in process
6,400
Total units accounted for
26,200
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
19,800
100%
19,800
100%
19,800
Units of ending goods in process
6,400
100%
6,400
30%
1,920
Equivalent units of production
26,200
26,200
21,720
Cost per EUP
Materials
Conversion
Cost of beginning goods in process
$4,580
$9,948
Costs incurred this period
345,190
375,582
Total costs
Costs
$349,770
Costs
$385,530
÷ Equivalent units of production
EUP
26,200
EUP
21,720
Cost per equivalent unit of production
$13.35
$17.75
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
19,800
$13.35
$264,330.00
Conversion
19,800
$17.75
$351,450.00
Total transferred out
$615,780.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
6,400
$13.35
$85,440.00
Conversion
1,920
$17.75
$34,080.00
Total ending goods in process
$119,520.00
Total costs accounted for
$735,300.00
Costs Charged to Production
Costs of beginning goods in process
$14,528.00
Costs incurred this period
720,772.00
Total costs to account for
$735,300.00
Total costs accounted for
735,300.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
5,700
Units started this period
20,500
Total units to account for
26,200
Total units accounted for
Completed and transferred out
19,800
Ending goods in process
6,400
Total units accounted for
26,200
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
19,800
100%
19,800
100%
19,800
Units of ending goods in process
6,400
100%
6,400
30%
1,920
Equivalent units of production
26,200
26,200
21,720
Cost per EUP
Materials
Conversion
Cost of beginning goods in process
$4,580
$9,948
Costs incurred this period
345,190
375,582
Total costs
Costs
$349,770
Costs
$385,530
÷ Equivalent units of production
EUP
26,200
EUP
21,720
Cost per equivalent unit of production
$13.35
$17.75
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
19,800
$13.35
$264,330.00
Conversion
19,800
$17.75
$351,450.00
Total transferred out
$615,780.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
6,400
$13.35
$85,440.00
Conversion
1,920
$17.75
$34,080.00
Total ending goods in process
$119,520.00
Total costs accounted for
$735,300.00
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