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	500		Beginning work in process inventory
Started	5,000		Direct materials	$	865
Ending work in process inventory	1,000		Conversion		1,656
							$	2,521
Status of ending work in process inventory			Direct materials added					40,000
Materials—Percent complete	100	%	Direct labor added					32,430
Conversion—Percent complete	30	%	Overhead applied (140% of direct labor)					45,402
			Total costs to account for				$	120,353
			Ending work in process inventory				$	12,398

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.)

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:

Computation of Equivalent unit of Production - Elliott Company
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	4500	4500	4500
Closing WIP:	1000
Material (100%)		1000
Conversion (30%)			300
Equivalent units of production	5500	5500	4800

Computation of Cost per equivalent unit of Production - Elliott Company
Particulars	Material	Conversion
Opening WIP	$865.00	$1,656.00
Cost Added during March	$40,000.00	$77,832.00
Total cost to be accounted for	$40,865.00	$79,488.00
Equivalent units of production	5500	4800
Cost per Equivalent unit	$7.43	$16.56

Computation of Cost of ending WIP and units completed & transferred out - Elliott Company
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	1000	300
Cost per equivalent unit	$7.43	$16.56
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$7,430	$4,968	$12,398
Units completed and transferred	4500	4500
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$33,435	$74,520	$107,955

Production cost report - Weighted Average - Elliott Company
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory ($865 + $1,656)	$2,521.00
Cost added to production ($40,000 + $77,832)	$117,832.00
Total Cost to be accounted for	$120,353.00
Costs accounted for as follows:
Cost of unit transferred out	$107,955
Ending WIP:
Material	$7,430
Converison	$4,968
Total cost accounted for	$120,353