Question

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 Direct Materials Conversion Units transferred out 40,500 EUP 40,500 EUP Units of ending work in process 2,500 EUP 1,500 EUP Equivalent units of production 43,000 EUP 42,000 EUP Costs per EUP Direct Materials Conversion Costs of beginning work in process $ 20,100 $ 2,720 Costs incurred this period 500,200 282,880 Total costs $ 520,300 $ 285,600 Units in beginning work in process (all completed during July) 2,000 Units started this period 41,000 Units completed and transferred out 40,500 Units in ending work in process 2,500

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	Direct Materials			Conversion
Units transferred out		40,500	EUP		40,500	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		43,000	EUP		42,000	EUP

Costs per EUP	Direct Materials				Conversion
Costs of beginning work in process		$	20,100			$	2,720
Costs incurred this period			500,200				282,880
Total costs		$	520,300			$	285,600

Units in beginning work in process (all completed during July) 2,000

Units started this period 41,000

Units completed and transferred out 40,500

Units in ending work in process 2,500

Costs Charged to Production Cost of beginning work in process $2,000.00 Units of beginning work in process 41,000.00 Total costs to account for $43,000.00 Total costs accounted for * Difference due to rounding cost/unit $0.00 Unit reconciliation Units to account for Completed and transferred out 40,500 Ending work in process 2,500 Total units to account for 43,000 Total units accounted for Total units accounted for Equivalent units of production (EUP) - FIFO method Units % Materials EUP- Materials % Conversion EUP- Conversion Total Cost per EUP Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per EUP (rounded to 2 decimals) 0 0 Cost assignment and reconciliation Costs transferred out EUP Cost per EUP Total cost Cost of beginning work in process $22,820.00 Cost to complete beginning work in process Direct materials Conversion Total cost to complete beginning work in process Costs of units started and completed this period EUP Cost per EUP Total cost Direct materials $0.00 Conversion $0.00 Total costs started and completed this period Total cost of work finished this period $22,820.00 Costs of ending work in process EUP Cost per EUP Total cost Direct materials $0.00 Conversion 16,600 $0.00 Total cost of ending work in process Total costs accounted for

Answer 1

Total cost to Account fr:
Cost of Beginingg WIP				22820
Current cost incurred				783080
Total cost to Account fr:				805900
Total cost accounted fr				805900
Difference				0
UNITS TO ACCOUNT FOR:
Beginning Work in Process units					2,000
Add: Units Started in Process					41,000
Total Units to account for:					43,000
UNITS TO BE ACCOUNTED FOR:
Unts completed from beginning WIP					2,000
Units started and completed					38,500
Ending Work in Process					2,500
Total Units to be accounted for:					43,000
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units completed from beginning WIP			2000	0%	0	80%	1,600
Units started and completed			38500	100%	38,500	100%	38,500
Ending Work in Process			2500	100%	2,500	60%	1,500
Total Equivalent units			43000		41,000		41,600
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Total Cost to account for:				500,200		282,880
Equivalent Units				41,000		41,600
Cost per Equivalent unit				12.2		6.8
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred from Beginning WIP (2000 units)
				Equivalent unit	Cost per EU	Total Cost
Beginning cost of WIP						22820
Material				0	12.2	0
Conversion Cost				1,600	6.8	10880
Total Cost of Units completed and transferred out:						33700
Units started and completed (38500 units)
				Equivalent unit	Cost per EU	Total Cost
Material				38,500	12.2	469700
Conversison Cost				38,500	6.8	261800
Total cost of Ending Work in process:						731,500
Units completed and transferred out:						765,200
Ending Work in process (2500 units)
				Equivalent unit	Cost per EU	Total Cost
Material				2,500	12.2	30500
Conversison Cost				1,500	6.8	10200
Total cost of Ending Work in process:						40,700
Total cost accounted for						805,900