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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		35,000	EUP		35,000	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		37,500	EUP		36,500	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	18,450			$	2,280
Costs incurred this period			394,050				205,770
Total costs		$	412,500			$	208,050

Units in beginning work in process (all completed during July)	2,000
Units started this period	35,500
Units completed and transferred out	35,000
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

		ASHAD COMPANY
	Production cost report
	Step1	Summery of Physical units and equivalent units calculation
		Units to be accounted for	Phycal units
		Units in the beginning WIP inventory	2,000
		Units started during the period	35,500
		Total units to be accounted for	37,500
				Equivalent units
	STEP2	Units accounted for	Physical unit	Material	Conversion
		Units completed and transferred out	35,000	35,000	35,000
		Units in ending WIP inventory	2,500	2,500	1,500
		Total units accounted for	37,500	37,500	36,500
	STEP3	Summery of costs to be accounted for
		Costs to be accounted for	Materials	Convesrsion	Total
		Cost in beginning WIP	$18,450	$2,280	$20,730
		Costs incurred during the period	$394,050	$205,770	$599,820
		Total costs to be accounted for	$412,500	$208,050	$620,550
	STEP4	Calculation of costs per equivalent unit(FIFO METHOD)
			Materials	Conversion
		Total costs to be accounted for(a)	$412,500	$208,050
		Total equivalent units accounted for(b)	37,500	36,500
		Cost per equivalent unit(a)/(b)	$11.00	$5.70
	STEP5	Assign costs to units transferred out and in Ending WIP
			Materials	Conversion	Total
		Costs assigned to units transferred out	$385,000	$199,500	$584,500
		Cost assigned to ending WIP	$27,500	$8,550	$36,050
					$620,550
	3