The following partially completed process cost summary descr

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.

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.)

Equivalent Units of Production	Direct Materials	Conversion
Units transferred out		37,500	EUP		37,500	EUP
Units of ending work in process		2,000	EUP		1,200	EUP
Equivalent units of production		39,500	EUP		38,700	EUP

Solution

1) Costs charged to Production Beginning work in process $           15,310 Cosst incurred during the period $       6,78,880 Total costs to account for $       6,94,190 Total Costs accounted for $       6,94,190 Difference due to rounding cost/unit 0 2) Unit Reconcilation Units to account for: Beginning work in process                 1,500 Units started during the period               38,000 Total Units to account for               39,500 total units accounted for: Units completed and transferred out               37,500 Units in ending work in process                 2,000 Total units accounted for               39,500 3) Equivalent units of Production(EUP)-Weighted Average Method Units % Materials EUP-Materials % Conversion EUP-Conversion Units completed      37,500 100%               37,500 100%         37,500 Units in Ending work in process         2,000 100%                 2,000 60%           1,200 Equivalent units of production               39,500         38,700 4) Cost per EUP Materials Conversion Costs in Beginning work in process $           13,450 $       1,860 Costs incurred during the period $       4,40,800 $ 2,38,080 Total Costs incurred Costs $       4,54,250 Costs $ 2,39,940 Equivalent units of production EUP               39,500 EUP         38,700 Cost per equivalent unit $             11.50 $         6.20 5) Cost Assignment and reconiclation EUP Cost per EUP Total Cost Costs transferred out Direct Materials      37,500 $             11.50 $       4,31,250 Conversion      37,500 $               6.20 $       2,32,500 Total transferred out $ 6,63,750 Cost of Ending work in process Direct Materials         2,000 $             11.50 $           23,000 Conversion         1,200 $               6.20 $             7,440 Total Ending work in proces $     30,440 Total Costs accounted for $ 6,94,190