Exercise 16-12 Weighted average: Completing a process cost summary LO C3 The fol
ID: 2611980 • Letter: E
Question
Exercise 16-12 Weighted average: Completing a process cost summary LO C3 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. Direct Materials Conversion Equivalent Units of Production Units transferred out Units of ending work in process 32,50032,500 1,560 2,600 Equivalent units of production 35,100 34,060 Direct Materials Conversion Costs per EUP Costs of beginning work in process Costs incurred this period $19,000 2,325 402.200 181,599 Total costs $ 421,200 183,924 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 2,100 33,000 32,500 2,600Explanation / Answer
Answer:
Costs Charged to Production
Costs of beginning goods in process
$21,325.00
Costs incurred this period
583,799.00
Total costs to account for
$605,124.00
Total costs accounted for
605,124.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
2,100
Units started this period
33,000
Total units to account for
35,100
Total units accounted for
Completed and transferred out
32,500
Ending goods in process
2,600
Total units accounted for
35,100
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Overhead
EUP- Overhead
Units completed and transferred out
32,500
100%
32,500
100%
32,500
Units of ending goods in process
2,600
100%
2,600
60%
1,560
Equivalent units of production
35,100
35,100
34,060
Cost per EUP
Materials
Overhead
Cost of beginning goods in process
$19,000
$2,325
Costs incurred this period
402,200
181,599
Total costs
Costs
$421,200
Costs
$183,924
÷ Equivalent units of production
EUP
35,100
EUP
34,060
Cost per equivalent unit of production
$12.00
$5.40
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
32,500
$12.00
$390,000.00
Factory overhead
32,500
$5.40
175,500.00
Total transferred out
565,500.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
2,600
$12.00
$31,200.00
Factory overhead
1,560
$5.40
8,424.00
Total ending goods in process
39,624.00
Total costs accounted for
605,124.00
Costs Charged to Production
Costs of beginning goods in process
$21,325.00
Costs incurred this period
583,799.00
Total costs to account for
$605,124.00
Total costs accounted for
605,124.00
*Difference due to rounding cost/unit
$0.00
Unit reconciliation
Units to account for
Beginning goods in process
2,100
Units started this period
33,000
Total units to account for
35,100
Total units accounted for
Completed and transferred out
32,500
Ending goods in process
2,600
Total units accounted for
35,100
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Overhead
EUP- Overhead
Units completed and transferred out
32,500
100%
32,500
100%
32,500
Units of ending goods in process
2,600
100%
2,600
60%
1,560
Equivalent units of production
35,100
35,100
34,060
Cost per EUP
Materials
Overhead
Cost of beginning goods in process
$19,000
$2,325
Costs incurred this period
402,200
181,599
Total costs
Costs
$421,200
Costs
$183,924
÷ Equivalent units of production
EUP
35,100
EUP
34,060
Cost per equivalent unit of production
$12.00
$5.40
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
32,500
$12.00
$390,000.00
Factory overhead
32,500
$5.40
175,500.00
Total transferred out
565,500.00
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
2,600
$12.00
$31,200.00
Factory overhead
1,560
$5.40
8,424.00
Total ending goods in process
39,624.00
Total costs accounted for
605,124.00
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