Question

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 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 Direct Materials conversion Equivalent Units of Production Units transferred out Units of ending work in process Equivalent units of production 32,00 EUP 2,500 EDP 34,500 EUP 32.000 EUP 1.500 EUP 33,500 EUP Conversion costs per EUP Costs of beginning work in process Costs incurred this period Total costs Direct Materials $ 18,550 337,00 $376,050 188.678 $ 190,950 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 32,500 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.) Costs Charged to Production Total costs to account for

Answer 1

solution:

Cost charged to production:
Beginning Work In Process	$20,830.00
Cost Added during period	$546,170.00
Total costs to account for	$567,000.00
Total costs accounted for	$567,000.00
Difference due to rounding cost per unit	$0.00
Units reconciliation:
Units to accounts for:
Beginning WIP	2000
Units started	32500
Total units to account for	34500
Total units accounted for:
Units completed and transferred out	32000
Units in ending WIP	2500
Total units accounted for	34500

Ashad Company Production cost Report
Particulars	Units	% Materials	Material	% Conversion	Conversion
Equivalent units of production - Weighted Average method
Unit completed & Transferred out	32000	100%	32000	100%	32000
Ending Work In Proces	2500	100%	2500	60%	1500
Equivalent units of production	34500		34500		33500
Cost per equivalent unit of production			Material		Conversion
Beginning Work In Process			$18,550.00		$2,280.00
Cost added during the period			$357,500.00		$188,670.00
Total costs		Cost	$376,050.00	Cost	$190,950.00
Equivalent units of production		EUP	34500	EUP	33500
Cost per equivalent unit			$10.90		$5.70
Cost Assignment and Reconciliation:
Cost of unit transferred out	EUP	Cost per EUP	Total Cost
Direct materials	32000	$10.90	$348,800.00
Conversion	32000	$5.70	$182,400.00
Total costs transferred out			$531,200.00
Cost of ending work in process
Direct materials	2500	$10.90	$27,250.00
Conversion	1500	$5.70	$8,550.00
Total Cost of ending work in process			$35,800.00
Total costs accounted for			$567,000.00