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 42,500 EUP 42,500 EUP Units of ending work in process 2,500 EUP 1,500 EUP Equivalent units of production 45,000 EUP 44,000 EUP Costs per EUP Direct Materials Conversion Costs of beginning work in process $ 20,700 $ 2,880 Costs incurred this period 541,800 313,920 Total costs $ 562,500 $ 316,800 Units in beginning work in process (all completed during July) 2,000 Units started this period 43,000 Units completed and transferred out 42,500 Units in ending work in process 2,500 Exercise 16-12 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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				2,000
Add: Units Started in Process				43,000
Total Units to account for:				45,000
UNITS TO BE ACCOUNTED FOR:
Units completed				42,500
Ending Work in Process				2,500
Total Units to be accounted for:				45,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed			100%	42,500	100%	42,500
Ending Work in Process			100%	2,500	60%	1,500
Total Equivalent units				45,000		44,000
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process			20,700		2,880
Cost Added during May			541,800		313,920
Total Cost to account for:			562,500		316,800
Total Cost to account for:					879,300
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			562,500		316,800
Equivalent Units			45,000		44,000
Cost per Equivalent unit			12.5		7.2
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (42500 units)
			Equivalent unit	Cost per EU	Total Cost
Material			42,500	12.5	531250
Conversion Cost			42,500	7.2	306000
Total Cost of Units completed and transferred out:					837250
Ending Work in process (2500 units)
			Equivalent unit	Cost per EU	Total Cost
Material			2,500	12.5	31250
Conversison Cost			1,500	7.2	10800
Total cost of Ending Work in process:					42,050