Question

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		40,000	EUP		40,000	EUP
Units of ending work in process		4,500	EUP		2,700	EUP
Equivalent units of production		44,500	EUP		42,700	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	43,950			$	5,360
Costs incurred this period			490,050				280,730
Total costs		$	534,000			$	286,090

Units in beginning work in process (all completed during July)	4,000
Units started this period	40,500
Units completed and transferred out	40,000
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

Costs charged to production:
Costs of beginning work in process	49310
Costs incurred this period	770780
Total costs to account for	820090
Total costs accounted for	820090
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	4000
Units started this period	40500
Total units to account for	44500
Total units accounted for:
Units completed and transferred out	40000
Ending work in process	4500
Total units accounted for	44500
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed and transferred out	40000	100%	40000	100%	40000
Ending work in process	4500	100%	4500	60%	2700
Equivalent units of production	44500		44500		42700
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			43950		5360
Costs incurred this period			490050		280730
Total costs		Costs	534000	Costs	286090
÷ Equivalent units of production		EUP	44500	EUP	42700
Cost per equivalent unit of production			12.00		6.70
Cost assignment and reconciliation:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	40000	12.00	480000
Convesrion	40000	6.70	268000
Total cost transferred out				748000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	4500	12.00	54000
Convesrion	2700	6.70	18090
Total Cost of ending work in Process				72090
Total cost accounted for				820090