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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		38,000	EUP		38,000	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		40,500	EUP		39,500	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	19,350			$	2,520
Costs incurred this period			450,450				246,330
Total costs		$	469,800			$	248,850

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

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

Costs charged to production
cost of beginning work in process				21,870
costs incurred this period				696,780
total costs to account for				718,650
Total costs accounted for				718,650
Difference due to rounding cost/unit				0
Unit Reconcilation
Units to account for
units in beginning work in process				2,000
units started this period				38,500
total units to account for				40,500
total units accounted for
units completed & tranferred out				38,000
units in ending work in process				2,500
total units accounted for				40,500
Equivalent units of production -(EUP)-Weighted average Method
			units	%materials	EUP-Mat	% CC	Eup-CC
units completed & tranferred out			38,000	100%	38,000	100%	38,000
units in ending work in process			2,500	100%	2,500	60%	1,500
Equivalent units of producton					40,500		39,500
Cost per EUP					Materials		CC
Cost of beginning work in process					19,350		2,520
cost incurred this period					450,450		246,330
total costs				Costs	469,800	Costs	248,850
Equivalent units of producton				EUP	40,500	EUP	39,500
Cost per Equivalent unit pf production					11.6		6.3
cost Assignment and Reconciliation
Costs transferred out				EUP	cost pu	total cost
Direct materials				38,000	11.6	440800
conversion				38,000	6.3	239400
total transferred out						680200
Cost of ending work in process
Direct materials				2,500	11.6	29000
conversion				1,500	6.3	9450
total ending work in process						38450
total costs accounted for							718650