Question

10.

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 FIFO 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) - FIFO method Units % Materials EUP- Materials % Conversion EUP- Conversion Total Cost per EUP Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per EUP (rounded to 2 decimals) 0 0 Cost assignment and reconciliation Costs transferred out EUP Cost per EUP Total cost Cost of beginning work in process Cost to complete beginning work in process Direct materials Conversion Total cost to complete beginning work in process Costs of units started and completed this period EUP Cost per EUP Total cost Direct materials $0.00 Conversion $0.00 Total costs started and completed this period Total cost of work finished this period $0.00 Costs of ending work in process EUP Cost per EUP Total cost Direct materials $0.00 Conversion $0.00 Total cost of ending work in process Total costs accounted for

Answer 1

Costs Charged to Production
Costs of beginning work in process	36900.00
Costs incurred this period	821800.00
Total costs to account for	858700.00
Total costs accounted for	858700.00
*Difference due to rounding cost/unit	0.00
Unit reconciliation
Units to account for
Beginning work in process	3000
Units started this period	42000
Total units to account for	45000
Total units accounted for
Completed and transferred out	41500
Ending work in process	3500
Total units accounted for	45000
Equivalent units of production (EUP) - FIFO Method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units to complete in beginning work in process	3000	0	0	80%	2400
Units started and completed this period	38500	100%	38500	100%	38500
Units of ending work in process	3500	100%	3500	60%	2100
Total	45000		42000		43000
Cost per EUP			Materials		Conversion
Costs added during this period			520800		301000
Total costs		Costs	520800	Costs	301000
÷ Equivalent units of production		EUP	42000	EUP	43000
Cost per EUP (rounded to 2 decimals)			12.40		7.00
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Cost of beginning work in process				36900
Cost to complete beginning work in process
Direct materials	0	12.40	0
Conversion	2400	7.00	16800
Total cost to complete beginning work in process				16800
Costs of units started and completed this period	EUP	Cost per EUP	Total cost
Direct materials	38500	12.40	477400
Conversion	38500	7.00	269500
Total costs started and completed this period				746900
Total cost of work finished this period				763700
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	3500	12.40	43400
Conversion	2100	7.00	14700
Total cost of ending work in process				58100
Total costs accounted for				858700