Question

The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. 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		40,500	EUP		40,500	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		43,000	EUP		42,000	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	20,100			$	2,720
Costs incurred this period			500,200				282,880
Total costs		$	520,300			$	285,600

Units in beginning work in process (all completed during July)	2,000
Units started this period	41,000
Units completed and transferred out	40,500
Units in ending work in process	2,500

Prepare its process cost summary using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

• Requirement

Costs Charged to Production:
Cost of beginning WIP	$                       22,820.00
Costs incurred this period	$                     783,080.00
Total Cost to account for	$                     805,900.00
Total costs accounted for	$                     805,900.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	2,000
Units started this period	41,000
Total Units to account for	43,000
Total Units accounted for:
Completed & Transferred out	40,500
Ending WIP	2,500
Total Units accounted for	43,000

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	2,500	100.0%	2,500	60.0%	1,500
Units STARTED & COMPLETED	38,500	100%	38,500	100%	38,500
Units of beginning WIP	2,000	0.00%	-	80%	1,600
Equivalent Units of Production			41,000		41,600
COST per EUP			Material		Conversion
Cost incurred this period			$       500,200.00		$                  282,880.00
Total Costs		Costs	$       500,200.00	Costs	$                  282,880.00
Equivalent units of production		EUP	41,000	EUP	41,600
Cost per EUP			$           12.20000		$                          6.8000

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			22,820.00
Cost to complete beginning WIP-
- Direct Materials	-	12.20	-
- Conversion	1,600.00	6.80	10,880.00
Total cost to complete beginning WIP			33,700.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	38,500.00	12.20	469,700.00
- Conversion	38,500.00	6.80	261,800.00
Total costs started & Completed this period			731,500.00
Total cost of work finished this period				765,200.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	2,500	$                            12.20	$          30,500.00
- Conversion	1,500	$                              6.80	$          10,200.00
Total cost of ending WIP				$               40,700.00
Total costs accounted for				$             805,900.00