Save Exit Help Check my er 16 0 Required information The fo

Save & Exit Help Check my er 16 0 Required information The folowing 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. The following information applies to the questions displayed below atecials conversion thits of ending work in process tquivalent snits of preduction 2-500 EUP1.500 EU 40,500 EUP 39,500 EUP Costs of beginning vork in Costs incurred this period 19, 350 2, 520 450-450 246,330 469,800 248,850 Units in beginning work in process (al1 completed during Ju1y) its started this period nits conpleted and transferred out tnits in anding work in process 2,000 38,500 38,000 2,500 7 0 de GH

Solution

As per the EUP(Equivalenyt units of production) information given , the company follows weighted average method.

Hence the costs incurred during July are assigned to finished production and to the ending inventory.

Working:

Cost reconciliation
Total costs to account for
Beginning inventory	21870
cost incurred in july	696780
	718650
Total Cost accounted for
Cost of finished goods	681490
Cost of ending inventory	37160
	718650
Units reconciliation
Beginning inventory	2000
started in july	38500
Total units to account for	40500
Finished and transferred	38000
Ending inventory	2500
Total units accounted for	40500