Question

A company produces large quantities of a standardized product. The following information is available for its production activities for September.

Units			Costs
Beginning work in process inventory	4,700		Beginning work in process inventory
Started	15,500		Direct materials	$	3,580
Ending work in process inventory	4,400		Conversion		7,248
							$	10,828
Status of ending work in process inventory			Direct materials added					255,990
Materials—Percent complete	100	%	Direct labor added					165,680
Conversion—Percent complete	40	%	Overhead applied (78% of direct labor)					129,982
			Total costs to account for				$	562,480
			Ending work in process inventory				$	64,647

Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Do not round intermediate calculations. Round "Cost per EUP" to 2 decimal places.)

Answer 1

Cost to account for:
Beginning work in process	$10,828
Cost added during September	551,652
Total cost to account for	562,480
Total cost accounted for	562,480
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process	4,700
Units started during September	15,500
Total units to account for	20,200
Total units accounted for
Units completed and transferred (20,200-4,400)	15,800
Ending work in process	4,400
Total units accounted for	20,200
Equivalent units of production - EUP
	Physical units	%Material	EUP-Material	%Conversion	EUP-Conversion
Units completed and transferred	15,800	100	15,800	100	15,800
Ending work in process	4,400	100	4,400	40	1,760
Total	20,200		20,200		17,560
Cost per equivalent units of production			Material		Conversion
Beginning work in process			$3,580		$7,248
Cost added during September			255,990		295,662
Total cost			259,570		302,910
Equivalent unit of production			20,200		17,560
Cost per equivalent unit of production			$12.85		$17.25
Total cost accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct material	15,800	$12.85	$203,030
Conversion	15,800	$17.25	272,550
Total cost of units transferred out				$475,580
Cost of ending work in process
Direct material	4,400	12.85	56,540
Conversion	1,760	17.25	30,360
Total cost of ending work in process				86,900
Total cost accounted for				$562,480