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[The following information applies to the questions displayed below.] The following partially completed process cost summary...

[The following information applies to the questions displayed below.]

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.)

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

Solutions

Expert Solution

Costs Charged to Production

Total costs to account for

620550

Total costs accounted for

620550

*Difference due to rounding cost/unit

Unit Reconciliation

Units to account for

37500

Total units to account for

37500

Total units accounted for

36500

Total units accounted for

36500

Equivalent Units of Production (EUP)- Weighted Average Method

Units

% Materials

EUP- Materials

% Conversion

EUP- Conversion

Units transferred out

35000

100%

35000

100%

35000

Units of ending work in process

2500

100%

2500

60%

1500

Equivalent units of production

37500

37500

36500

Cost per EUP

Materials

Conversion

Total costs

Costs

            412,500

Costs

               208,050

÷ Equivalent units of production

EUP

              37,500

EUP

                 36,500

Cost per equivalent unit of production

                11.00

                      5.70

Cost Assignment and Reconciliation

Costs transferred out

EUP

Cost per EUP

Total cost

Direct materials

35000

            11.00

      385,000.00

Conversion

35000

               5.70

      199,500.00

Total transferred out

      584,500.00

Costs of ending work in process

EUP

Cost per EUP

Total cost

Direct materials

2500

            11.00

        27,500.00

Conversion

1500

               5.70

           8,550.00

Total ending work in process

        36,050.00

Total costs accounted for

      620,550.00



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