Question

9.

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		41,500	EUP		41,500	EUP
Units of ending work in process		3,500	EUP		2,100	EUP
Equivalent units of production		45,000	EUP		43,600	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	32,700			$	4,200
Costs incurred this period			520,800				301,000
Total costs		$	553,500			$	305,200

Units in beginning work in process (all completed during July)	3,000
Units started this period	42,000
Units completed and transferred out	41,500
Units in ending work in process	3,500

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

Costs Charged to Production Total costs to account for $0.00 Total costs accounted for *Difference due to rounding cost/unit $0.00 Unit Reconciliation Units to account for Total units to account for Total units accounted for Total units accounted for Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion EUP- Conversion Equivalent units of production Cost per EUP Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production 0 0 Cost Assignment and Reconciliation Costs transferred out EUP Cost per EUP Total cost Direct materials Conversion Total transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials $0.00 Conversion $0.00 Total ending work in process Total costs accounted for

Answer 1

1.

Prepare a process cost summary:

Costs charged to Production
Beginning work in process (32700+4200)	36900
Cost incurred during the period	821800
Total costs to account for	858700
Total Costs accounted for	858700
Difference due to rounding cost/unit	0

Unit Reconciliation
Units to account for:
Beginning work in process	3000
Units started during the period	42,000
Total Units to account for	45,000
Total units accounted for:
Units completed and transferred out	41500
Units in ending work in process	3,500
Total units accounted for	45,000

Equivalent units of production(EUP)-Weighted Average Method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed	41,500	100%	41,500	100%	41,500
Units in Ending work in process	3,500	100%	3,500	60%	2,100
Equivalent units of production			45,000		43,600

Cost per EUP
		Materials		Conversion
Costs in Beginning work in process		32700		4200
Costs incurred during the period		520800		301000
Total Costs incurred	Costs	553500	Costs	305200
Equivalent units of production	EUP	45,000	EUP	43,600
Cost per equivalent unit		12.30		7.00

Cost Assignment and reconciliation
	EUP	Cost per EUP	Total Cost
Costs transferred out
Direct Materials	41,500	12.3	510450
Conversion	41,500	7	290500
Total transferred out				800950
Cost of Ending work in process
Direct Materials	3,500	12.3	43050
Conversion	2,100	7	14700
Total Ending work in process				57750
Total Costs accounted for				858700