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		41,500	EUP		41,500	EUP
Units of ending work in process		3,500	EUP		2,100	EUP
Equivalent units of production		45,000	EUP		43,600	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	32,700			$	4,200
Costs incurred this period			520,800				301,000
Total costs		$	553,500			$	305,200

Units in beginning work in process (all completed during July)	3,000
Units started this period	42,000
Units completed and transferred out	41,500
Units in ending work in process	3,500

Exercise 20-12 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.)

Answer 1

Costs Charged to Production
						Costs of beginning goods in process	$36,900.00
Costs incurred this period	$821,800.00
						Total costs to account for	$858,700.00
Total costs accounted for	858,700.00
						*Difference due to rounding cost/unit	$0.00
Unit reconciliation
						Units to account for
Beginning goods in process	3,000
						Units started this period	42,000
Total units to account for	45,000
						Total units accounted for
Completed and transferred out	41,500
						Ending goods in process	3,500
Total units accounted for	45,000
						Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	%Conversion	EUP-Conversion
						Units completed and transferred out	41,500	100%	41,500	100%	41,500
Units of ending goods in process	3,500	100%	3,500	60%	2,100
Equivalent units of production	45,000		45,000		43,600
						Cost per EUP			Materials		Conversion
Cost of beginning goods in process			$32,700		$4,200
						Costs incurred this period			520,800		301,000
Total costs		Costs	$553,500	Costs	$305,200
						÷  Equivalent units of production		EUP	45,000	EUP	43,600
Cost per equivalent unit of production			$12.30		$7.00
						Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
						Direct materials	41,500	$12.30	$510,450.00
Direct Conversion	41,500	$7.00	$290,500.00
Total transferred out				$800,950.00
						Costs of ending goods in process	EUP	Cost per EUP	Total cost
Direct materials	3,500	$12.30	43,050.00
Direct Conversion	2,100	$7.00	14,700.00
Total ending goods in process				$57,750.00
						Total costs accounted for				$858,700.00