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		39,000	EUP		39,000	EUP
Units of ending work in process		3,500	EUP		2,100	EUP
Equivalent units of production		42,500	EUP		41,100	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	31,450			$	3,900
Costs incurred this period			470,050				263,250
Total costs		$	501,500			$	267,150

Units in beginning work in process (all completed during July)	3,000
Units started this period	39,500
Units completed and transferred out	39,000
Units in ending work in process	3,500
Prepare its process cost summary using the weighted-average method. Costs Charged to Production Total costs to account for Total costs accounted for *Difference due to rounding cost/unit 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 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 Conversion Total ending work in process Total costs accounted for

Answer 1

1)
Cost charged to production:
Beginning work in process					$           35,350
Costs icurrred during this period					7,33,300
Total Costs to account for					7,68,650
Total Costs accounted for					7,68,650
Difference due to rounding cost/unit					0
2)
Unit Reconcilation:
Units to account for:
Beginning Work in process					3,000
Units started during the period					39,500
Total units to account for					42,500
Total units accounted for:
Units transferred out					39,000
Units in ending work in process					3,500
Total units accounted for					42,500
3)
Equivalent Units of Production (EUP)- Weighted Average Method
				Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units transferred out				39,000	100%	39,000	100%	39,000
Units in ending work in process				3,500	100%	3,500	60%	2,100
Total				42,500		42,500		41,100
4)
Cost per EUP
					Materials		Conversion
	Beginning work in process				$           31,450		$             3,900
	Costs incured during this period				$       4,70,050		$       2,63,250
	Total Costs				$       5,01,500		$       2,67,150
	÷ Equivalent units of production				42,500		41,100
	Cost per equivalent unit of production				$             11.80		$               6.50
5)
	Cost Assignment and Reconciliation
	Costs transferred out				EUP	Cost per EUP	Total cost
	Direct Materials				39,000	$                11.80	$       4,60,200
	Conversion				39,000	$                  6.50	$       2,53,500
	Total transferred out							$     7,13,700
	Costs of Ending work in process:				EUP	Cost per EUP	Total cost
	Direct Materials				3,500	$                11.80	$           41,300
	Conversion				2,100	$                  6.50	$           13,650
	Total ending work in process							$        54,950
	Total costs accounted for							$     7,68,650