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		37,500	EUP		37,500	EUP
Units of ending work in process		2,000	EUP		1,200	EUP
Equivalent units of production		39,500	EUP		38,700	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	13,450			$	1,860
Costs incurred this period			440,800				238,080
Total costs		$	454,250			$	239,940

Units in beginning work in process (all completed during July)	1,500
Units started this period	38,000
Units completed and transferred out	37,500
Units in ending work in process	2,000

Exercise 16-12 Weighted average: Completing a process cost summary LO C3

Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Costs Charged to Production Total costs to account for $0.00 Total costs accounted for *Difference due to rounding cost/unit $0.00 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 0 0 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 $0.00 Conversion $0.00 Total ending work in process Total costs accounted for

Answer 1

1)
	Costs charged to Production
	Beginning work in process					$           15,310
	Cosst incurred during the period					$       6,78,880
	Total costs to account for					$       6,94,190
	Total Costs accounted for					$       6,94,190
	Difference due to rounding cost/unit					0
2)
	Unit Reconcilation
	Units to account for:
	Beginning work in process					1,500
	Units started during the period					38,000
	Total Units to account for					39,500
	total units accounted for:
	Units completed and transferred out					37,500
	Units in ending work in process					2,000
	Total units accounted for					39,500
3)
	Equivalent units of Production(EUP)-Weighted Average Method
				Units	% Materials		EUP-Materials		% Conversion		EUP-Conversion
	Units completed			37,500	100%		37,500		100%		37,500
	Units in Ending work in process			2,000	100%		2,000		60%		1,200
	Equivalent units of production						39,500				38,700
4)	Cost per EUP
							Materials		Conversion
		Costs in Beginning work in process					$           13,450		$       1,860
		Costs incurred during the period					$       4,40,800		$ 2,38,080
		Total Costs incurred				Costs	$       4,54,250	Costs	$ 2,39,940
		Equivalent units of production				EUP	39,500	EUP	38,700
		Cost per equivalent unit					$             11.50		$         6.20
5)
	Cost Assignment and reconiclation
					EUP	Cost per EUP	Total Cost
	Costs transferred out
	Direct Materials				37,500	$             11.50	$       4,31,250
	Conversion				37,500	$               6.20	$       2,32,500
	Total transferred out							$ 6,63,750
	Cost of Ending work in process
	Direct Materials				2,000	$             11.50	$           23,000
	Conversion				1,200	$               6.20	$             7,440
	Total Ending work in proces							$     30,440
	Total Costs accounted for							$ 6,94,190