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nnecthtml ?returnUrl. https%3A%2F%2Fconnectanheducation.com%2fpaamweb%2Findechtmins25se 16 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 Convers Units transferred out Units of ending work in process Equivalent units of production 2, 500 EUP 42,509 EUP 2,500 EUP 45,000 EUP 1,500 EUP 44,080 EUP Costs of beginning work in process Costs Incurred this perlod s 20,760 2,880 Total costs 5 562,50316,800 units in begLinning work in process (al1 completed during Suly) Units started this perlod Units completed and transferred out Units in ending work in process 2,0ee 43,000 42,500 2,500 Prepare its process cost summary using the weighted-average method. (Round \"Cost per EUP to 2 decimal places.) otal costs to account for Total costs accounted for 0.00 Units to account for Total units to account for

Solution

a. Costs charged to production Costs of Beginning work in process $           23,580 Costs incurred this period $       8,55,720 Total Costs to be accounted for $       8,79,300 Total costs accounted for $       8,79,300 Difference due to rounding cost/unit 0 b. Unit Reconcilation Units to account for Beginning work in process units                 2,000 Units started during this period               43,000 Total units to be accounted for               45,000 Total units accounted for Units completed and transferred out               42,500 Units in ending work in process                 2,500 Total units accounted for               45,000 c. Equivalent units of Production((EUP)-Weighted Average Method Units % Materials EUP-Materials % Conversion EUP-Conversion Units completed               42,500 100%         42,500 100%      42,500 Units in Ending Work in process                 2,500 100%           2,500 60%         1,500 Equivalent units of Production               45,000         45,000      44,000 d. Cost per EUP Materials Conversion Costs of Beginning work in process $           20,700 $             2,880 Costs incurred during this period $       5,41,800 $       3,13,920 Total Costs $       5,62,500 $       3,16,800 / Equivalent units of production               45,000               44,000 Cost per Equivalent unit of production $             12.50 $               7.20 e. Cost assignment and reconcilation: Costs transferred out: EUP Cost per EUP Total Cost Direct Materials               42,500 $             12.50 $       5,31,250 Conversion               42,500 $               7.20 $       3,06,000 Total transferred out $ 8,37,250 Costs of Ending work in process: Direct Materials                 2,500 $             12.50 $           31,250 Conversion                 1,500 $               7.20 $           10,800 Total Ending Work in process $     42,050 Total Costs acounted for $ 8,79,300