Question

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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		44,000	EUP		44,000	EUP
Units of ending work in process		4,000	EUP		2,400	EUP
Equivalent units of production		48,000	EUP		46,400	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	40,350			$	5,250
Costs incurred this period			574,050				342,750
Total costs		$	614,400			$	348,000

Units in beginning work in process (all completed during July)	3,500
Units started this period	44,500
Units completed and transferred out	44,000
Units in ending work in process	4,000

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

Costs Charged to Production Costs of beginning work in process $45,600.00 Costs incurred this period 916,800.00 Total costs to account for $962,400.00 Total costs accounted for *Difference due to rounding cost/unit $0.00 Unit Reconciliation Units to account for Beginning work in process 3,500 Units started this period 44,500 Total units to account for 48,000 Total units accounted for Completed and transferred out 44,000 Ending work in process 4,000 Total units accounted for 48,000 Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion EUP- Conversion Units completed and transferred out Units of ending work in process 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

Answer 1

Total costs to account for:
Costs of beginning work in process	45600
Costs incurred this period	916800
Total costs to account for	962400
Total costs accounted for	962400
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory	3500
Units started this period	44500
Total units to account for	48000
Total units accounted for:
Units completed and transferred out	44000
Ending work in process	4000
Total units accounted for	48000
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	44000	100%	44000	100%	44000
Ending work in process	4000	100%	4000	60%	2400
Total units	48000		48000		46400
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			40350		5250
Costs incurred this period			574050		342750
Total costs			614400		348000
÷ Equivalent units of production			48000		46400
Cost per equivalent unit of production			12.8		7.50
Cost Assignment and Reconciliation
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	44000	12.8	563200
Conversion	44000	7.5	330000
Total cost transferred out				893200
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	4000	12.8	51200
Conversion	2400	7.5	18000
Total Cost of ending work in Process				69200
Total cost accounted for				962400