Question

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.

Equivalent Units of Production	Direct Materials			Conversion
Units transferred out		44,000	EUP		44,000	EUP
Units of ending work in process		4,000	EUP		2,400	EUP
Equivalent units of production		48,000	EUP		46,400	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	40,350			$	5,250
Costs incurred this period			574,050				342,750
Total costs		$	614,400			$	348,000

Units in beginning work in process (all completed during July)	3,500
Units started this period	44,500
Units completed and transferred out	44,000
Units in ending work in process	4,000

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

Note: Please solve the problem completely.

Thank you,

Answer 1

Total Cost to account for:
Cost of beginning WIP	$          45,600.00
Costs incurred this period	$       916,800.00
Total Cost to account for	$       962,400.00
Total costs accounted for	$       962,400.00
Difference due to rounding cost/unit	$                         -

Units Reconciliation
Units to account for:
Beginning WIP	3,500
Units started this period	44,500
Total Units to account for	48,000
Total Units accounted for:
Completed & Transferred out	44,000
Ending WIP	4,000
Total Units accounted for	48,000

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	44,000	100%	44,000	100%	44,000
Units of ENDING WIP	4,000	100%	4,000	60%	2,400
Equivalent Units of Production			48,000		46,400
COST per EUP			Material		Conversion
Cost of Beginning WIP			$        40,350.00		$                                    5,250.00
Cost incurred during the period			$      574,050.00		$                                342,750.00
Total Costs		Costs	$      614,400.00	Costs	$                                348,000.00
Equivalent units of production		EUP	48,000	EUP	46,400
Cost per EUP			$         12.80000		$                                      7.50000

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	44,000	$            12.80	$      563,200.00
- Conversion	44,000	$               7.50	$      330,000.00
Total Cost transferred Out				$            893,200.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	4,000	$            12.80	$        51,200.00
- Conversion	2,400	$               7.50	$        18,000.00
Total cost of ending WIP				$              69,200.00
Total costs accounted for					$                                962,400.00