Question

Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May.

Units			Costs
Beginning work in process inventory	4,900		Beginning work in process inventory
Started	16,500		Direct materials	$	3,780
Ending work in process inventory	4,800		Conversion		7,788
							$	11,568
Status of ending work in process inventory			Direct materials added					273,350
Materials—Percent complete	100	%	Direct labor added					177,680
Conversion—Percent complete	30	%	Overhead applied (72% of direct labor)					127,526
			Total costs to account for				$	590,124
			Ending work in process inventory				$	67,824

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

Total costs to account for:
Costs of beginning work in process	11568
Costs incurred this period	578556
Total costs to account for	590124
Total costs accounted for	590124
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	4900
Units started this period	16500
Total units to account for	21400
Total units accounted for:
Units completed and transferred out	16600
Ending work in process	4800
Total units accounted for	21400
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	16600	100%	16600	100%	16600
Ending work in process	4800	100%	4800	30%	1440
Total units	21400		21400		18040
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			3780		7788
Costs incurred this period			273350		305206
Total costs			277130		312994
÷ Equivalent units of production			21400		18040
Cost per equivalent unit of production			12.95		17.35
Total cost accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	16600	12.95	214970
Convesrion	16600	17.35	288010
Total cost transferred out				502980
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	4800	12.95	62160
Convesrion	1440	17.35	24984
Total Cost of ending work in Process				87144
Total cost accounted for				590124