0 Required information The following information applies to

0 Required information 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 uivalent Units of Production Units transferred out Materials Conversion 32,000 EUP 32,000 EUP Units of ending work in process2,500 EUP1,500 EUP 34,500 EUP 33,500 EUP Equivalent units of production Direct Materials Conversion $ 18,550 2,280 Costs per EUP Costs of beginning work in process Costs incurred this period Total costs 357,500188,670 376, 050 $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 2,000 32,500 32,000 2,500

Solution

Cost Charged to Production Costt of Beginning WIP 20830 Cost added during the period 546170 Total cost to account for 567000 Rounding off difference 12 UNITS TO ACCOUNT FOR: Beginning Work in Process units 2,000 Add: Units Started in Process 32,500 Total Units to account for: 34,500 UNITS TO BE ACCOUNTED FOR: Units started and completed 32,000 Ending Work in Process 2,500 Total Units to be accounted for: 34,500 Equivalent Units: Units Material Cost Conversion % Completion Units % Completion Units Units started and completed 32000 100% 32,000 100% 32,000 Ending Work in Process 2500 100% 2,500 20% 500 Total Equivalent units 34500 34,500 32,500 Req 2 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 18,550 2,280 Cost Added during May 357,500 188,670 Total Cost to account for: 376,050 190,950 Equivalent Units 34,500 32,500 Cost per Equivalent unit 10.9 5.875 Req 3 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (32000 units) Equivalent unit Cost per EU Total Cost Material 32,000 10.9 348800 Conversion Cost 32,000 5.875 188000 Total Cost of Units completed and transferred out: 536800 Ending Work in process (2500 units) Equivalent unit Cost per EU Total Cost Material 2,500 10.9 27250 Conversison Cost 500 5.875 2937.5 Total cost of Ending Work in process: 30,188 Total cost assigned 566,988