Question

Required information Use the following information for the Exercises below. 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 34,000 FUP 4.500 EUP 38,50 EUP Conversion 34.000 EUP 2,700 EUP 36,700 EUP Costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 39,750 376,050 $415,800 conversion $ 4,400 197.450 201.se 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 34,000 Exercise 16-12 Weighted average: Completing a process cost summary LO C3

Answer 1

Working as follows:

Equivalent units of production (EUP) Weighted Average Method Units 34.000 4,500 38,500 Conversion cost 100% 60% Units completed and transferred out Units of ending goods in process Equivalent units of production Cost per EUP Cost of beginning goods in process Costs incurred this period Total Costs - Equivalent units of production Costs per equivalent unit of production % Materials EUP-Materials 100% 34,000 100% 4.500 38,500 Materials $39.750 $376,050 Costs $415.800 EUP 38,500 $10.80 EUP Conversion cost 34.000 2700 36.700 Conversion $4.400 $197.450 $201.850 36.700 $5.50 Costs EUP

Cost Assignment and reconcilliation EUP Cost per EUP Total cost 34.000 $10.80 $367,200 34.000 $5.50 $187.000 $554.200 EUP Cost per EUP Total cost 4,500 $10.80 $48.600 2.700 $5.50 $14.850 $63,450 Costs tranferred out Direct material Conversion cost Total transferred out Costs of ending goods in process Direct materials Conversion cost Total transferred out Total ending goods in process $554,200 $63,450 $617,650

________________________________________________________________________

Prepare its process cost summary using the weighted-avearge method as follows:

Costs charged to production Cost of beginning goods in process ($39750+$4400) Costs incurred this period ($376050+$197450) Total costs to account for Total costs accounted for (As computed above) * Difference due to rounding cost/unit $44,150 $573,500 $617,650 $617,650 SO Unit reconcilliation Units to account for Beginning goods in process Units started this period Total units to account for Total units accounted for Completed and transferred out Ending goods in process Total units accounted for 4,000 34,500 38,500 34,000 4,500 38,500