Question

Required information (The following information applies to the questions displayed below.] The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. 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 Units transferred out Units of ending work in process Equivalent units of production Direct Materials 32,500 EUP 3,000 EUP 35,500 EUP Conversion 32,500 EUP 1,800 EUP 34,300 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 22,950 349,800 $ 372,750 Conversion $ 2,600 175,760 $ 178, 360 eted during puss Units in beginning work in process (all completed during July) Units started this period Units completed and transferred out Units in ending work in process 2,500 33,000 32,500 3,000

Answer 1

W.AVG

Costs Charged to Production
						Costs of beginning goods in process	$25,550
Costs incurred this period	$525,560
						Total costs to account for	$551,110
Total costs accounted for	551,110
						*Difference due to rounding cost/unit	$0.00
Unit reconciliation
						Units to account for
Beginning goods in process	2,500
						Units started this period	33,000
Total units to account for	35,500
						Total units accounted for
Completed and transferred out	32,500
						Ending goods in process	3,000
Total units accounted for	35,500
						Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	%Conversion	EUP-Conversion
						Units completed and transferred out	32,500	100%	32,500	100%	32,500
Units of ending goods in process	3,000	100%	3,000	60%	1,800
Equivalent units of production	35,500		35,500		34,300
						Cost per EUP			Materials		Conversion
Cost of beginning goods in process			$22,950		$2,600
						Costs incurred this period			349,800		175,760
Total costs		Costs	$372,750	Costs	$178,360
						÷  Equivalent units of production		EUP	35,500	EUP	34,300
Cost per equivalent unit of production			$10.50		$5.20
						Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
						Direct materials	32,500	$10.50	$341,250.00
Direct Conversion	32,500	$5.20	$169,000.00
Total transferred out				$510,250.00
						Costs of ending goods in process	EUP	Cost per EUP	Total cost
Direct materials	3,000	$10.50	31,500.00
Direct Conversion	1,800	$5.20	9,360.00
Total ending goods in process				$40,860.00
						Total costs accounted for				$551,110.00

FIFO

Costs Charged to Production
Cost of beginning work in process	$25,550.00	22950+2600
Costs incurred this period	525,560.00	349800+175760
Total costs to account for	$551,110.00
Total costs accounted for	551,110.00
* Difference due to rounding cost/unit	$0.00
Unit reconciliation
Units to account for
Beginning work in process	2,500
Units started this period	33,000
Total units to account for	35,500
Total units accounted for
Completed and transferred out	32,500
Ending work in process	3,000
Total units accounted for	35,500
Equivalent units of production (EUP) - FIFO method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Units of beginning work in process	2,500	0%	0	80%	2,000
Units started and completed	30,000	100%	30000	100%	30,000
Units of ending work in process	3,000	100%	3000	60%	1,800
Equivalent units of production	35,500		33,000		33,800
Cost per EUP			Materials		Conversion
Costs incurred this period			349,800		175,760
Total costs		Costs	$349,800	Costs	$175,760
÷ Equivalent units of production		EUP	33,000	EUP	33,800
Cost per EUP (rounded to 2 decimals)			$10.60		$5.20
Cost assignment and reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Cost of beginning work in process				$25,550.00
Cost to complete beginning work in process
Direct materials	0	$10.60	0.00
Conversion	2,000	$5.20	10,400.00
Total cost to complete beginning work in process				$10,400.00
Costs of units started and completed this period	EUP	Cost per EUP	Total cost
Direct materials	30,000	$10.60	318,000.00
Conversion	30,000	$5.20	156,000.00
Total costs started and completed this period				$474,000.00
Total cost of work finished this period				$509,950.00
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	3,000	$10.60	31,800.00
Conversion	1,800	$5.20	9,360.00
Total cost of ending work in process				41,160.00
Total costs accounted for				$551,110.00