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	3,000		Beginning work in process inventory
Started	30,000		Direct materials	$	3,180
Ending work in process inventory	6,000		Conversion		13,896
							$	17,076
Status of ending work in process inventory			Direct materials added					212,310
Materials—Percent complete	100	%	Direct labor added					170,910
Conversion—Percent complete	25	%	Overhead applied (140% of direct labor)					239,274
			Total costs to account for				$	639,570
			Ending work in process inventory				$	61,500

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.)

Answer 1

Step-1:Physical reconcilation
Beginning Work in process inventory					3,000
Units started					30,000
Total					33,000
Units completed					27,000
Units in ending work in process					6,000
Total					33,000
Step-2:Calculation of equivalent units of production
				Physical Units		Material %		EUP-Material		Conversion %		EUP-Conversion
Units completed				27,000		100%		27,000		100%		27,000
Units in Ending work in process				6,000		100%		6,000		25%		1,500
Total				33,000				33,000				28,500
Step-3:Calculation of Costs per equivalent units of production
					Materials			Conversions		Total
Beginning Work in process					$     3,180			$   13,896		$   17,076
Costs incurred during this period					$2,12,310			$4,10,184		$6,22,494
Total costs incurred					$2,15,490			$4,24,080		$6,39,570
÷ Equivalent units of prodiction (EUP)					33,000			28,500
Cost per equivalent units					$      6.53			$     14.88
Step-4:Assignment of costs to units completed and ending work in process
				EUP	Cost per EUP		Total costs
Units completed:
Materials				27,000	$      6.53		$1,76,310
Conversion				27,000	$     14.88		$4,01,760
	Total							$5,78,070
				EUP	Cost per EUP		Total costs
Ending work in process unnits
Materials				6,000	$      6.53		$   39,180
Conversion				1,500	$     14.88		$   22,320
	Total							$   61,500
Total costs accounted for								$6,39,570
Step-5:Reconcilation of costs
Beginning work in process				$   17,076
Cost incurred durng this period				$6,22,494
Costs to be accounted for				$6,39,570
Cost of units completed				$5,78,070
Ending work in process				$   61,500
Cost accounted for				$6,39,570