Question

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

Units			Costs
Beginning work in process inventory	3,500		Beginning work in process inventory
Started	35,000		Direct materials	$	3,605
Ending work in process inventory	7,000		Conversion		15,876
							$	19,481
Status of ending work in process inventory			Direct materials added					250,880
Materials—Percent complete	100	%	Direct labor added					240,135
Conversion—Percent complete	20	%	Overhead applied (140% of direct labor)					336,189
			Total costs to account for				$	846,685
			Ending work in process inventory				$	71,470

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. (Round "Cost per EUP" to 2 decimal places.)

Fill in white AND yellow boxes

Total Costs to Account for: 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 Total units Cost per Equivalent Unit of Production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) Total Costs Accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Conversion Total cost of ending work in process Total costs accounted for

Answer 1

Solution:

Reconciliation of Physical units
Particulars	Physical Units	Particulars	Physical Units
Beginning units	3500	Unit Completed	31500
Unit started	35000	Ending Units	7000
Total Units	38500	Total Units	38500

Computation of Equivalent unit of Production - Weighted Average
Particulars	Physical Units	Material	Conversion (Labor + Overhead)
Unit completed & Transferred out	31500	31500	31500
Closing WIP:	7000
Material (100%)		7000
Conversion (20%)			1400
Equivalent units of production	38500	38500	32900

Computation of Cost per equivalent unit of Production - Weighted Average
Particulars	Material	Conversion (Labor + Overhead)
Opening WIP	$3,605.00	$15,876.00
Cost Added during March	$250,880.00	$576,324.00
Total cost to be accounted for	$254,485.00	$592,200.00
Equivalent units of production	38500	32900
Cost per Equivalent unit	$6.61	$18.00

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average
Particulars	Material	Conversion (Labor + Overhead)	Total
Equivalent unit of Ending WIP	7000	1400
Cost per equivalent unit	$6.61	$18.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$46,270	$25,200	$71,470
Units completed and transferred	31500	31500
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$208,215	$567,000	$775,215

Cost Reconciliation - Weighted Average
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$19,481.00
Cost added to production	$827,204.00
Total Cost to be accounted for	$846,685.00
Costs accounted for as follows:
Cost of unit transferred out	$775,215.00
Ending WIP:
Material	$46,270.00
Converison	$25,200.00
Total cost accounted for	$846,685.00
Difference due to rounding cost/Unit	$0.00