Question

3.9. Required information [The following information applies to the questions displayed below.] 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 34,000 EUP 34,000 EUP Units of ending work in process 4,500 EUP 2,700 EUP Equivalent units of production 38,500 EUP 36,700 EUP Costs per EUP Direct Materials Conversion Costs of beginning work in process $ 39,750 $ 4,400 Costs incurred this period 376,050 197,450 Total costs $ 415,800 $ 201,850 Units in beginning work in process (all completed during July) 4,000 Units started this period 34,500 Units completed and transferred out 34,000 Units in ending work in process 4,500 Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

• Requirement

Total Cost to account for:
Cost of beginning WIP	$                      44,150.00
Costs incurred this period	$                    573,500.00
Total Cost to account for	$                    617,650.00
Total costs accounted for	$                    617,650.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	4,000
Units started this period	34,500
Total Units to account for	38,500
Total Units accounted for:
Completed & Transferred out	34,000
Ending WIP	4,500
Total Units accounted for	38,500

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	34,000	100%	34,000	100%	34,000
Units of ENDING WIP	4,500	100%	4,500	60%	2,700
Equivalent Units of Production			38,500		36,700
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          39,750.00		$                                    4,400.00
Cost incurred during the period			$        376,050.00		$                                197,450.00
Total Costs		Costs	$        415,800.00	Costs	$                                201,850.00
Equivalent units of production		EUP	38,500	EUP	36,700
Cost per EUP			$            10.80000		$                                      5.50000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	34,000	$                    10.80	$        367,200.00
- Conversion	34,000	$                      5.50	$        187,000.00
Total Cost transferred Out				$            554,200.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	4,500	$                    10.80	$          48,600.00
- Conversion	2,700	$                      5.50	$          14,850.00
Total cost of ending WIP				$              63,450.00
Total costs accounted for					$                                617,650.00