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		35,000	EUP		35,000	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		37,500	EUP		36,500	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	18,450			$	2,280
Costs incurred this period			394,050				205,770
Total costs		$	412,500			$	208,050

Units in beginning work in process (all completed during July)	2,000
Units started this period	35,500
Units completed and transferred out	35,000
Units in ending work in process	2,500

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

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Costs Charged to Production $3,500.00 Total costs to account for $3,500.00 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

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Cost of goods manufactured

Costs incurred this period

Costs of beginning work in process

Raw material purchases

Answer 1

Costs Charged to Production
Costs of Beginning WIP	20,730
Costs incurred this period	599,820
Total Costs to account for	620,550
Total costs accounted for	620,550
Difference due to rounding cost/unit	-
Unit Reconciliation
Units to account for:
Beginning WIP	2,000
Started into Production	35,500
Total units to account for	37,500
Total units accounted for
Completed during the period	35,000
Ending WIP	2,500
Total units accounted for	37,500
Equivalent Units of Production (EUP) - Weighted Average Method
	Units	% Material	EUP-Materials	% Conversion	EUP-Conversion
Completed during the period	35,000	100%	35,000	100%	35,000
Ending WIP	2,500	100%	2,500	60%	1,500
Equivalent Units of Production (EUP)			37,500		36,500
Cost per EUP			Materials		Conversion
Beginning WIP			18,450		2,280
Cost Incurred during the period			394,050		205,770
Total Costs		Costs	412,500	Costs	208,050
Equivalent Units of Production (EUP)		EUP	37,500	EUP	36,500
Cost per Equivalent Units of Production			11.00		5.70
Cost Assignment and Reconciliation
Costs Transferred Out	EUP	Cost per EUP	Total Cost
Direct Materials	35,000	11.00	385,000
Conversion	35,000	5.70	199,500
Total transferred Out			584,500
Costs of Ending WIP	EUP	Cost per EUP	Total Cost
Direct Materials	2,500	11.00	27,500
Conversion	1,500	5.70	8,550
Total Ending WIP			36,050
Total costs accounted for				620,550