1) 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. Ending work in process inventory is 60% complete with respect to conversion.

Equivalent Units of Production	Direct Materials		Conversion
Units transferred out	43,500		43,500
Units of ending work in process	4,800		2,880
Equivalent units of production	48,300		46,380

Costs per EUP	Direct Materials		Conversion
Costs of beginning work in process	$	28,900	$	3,315
Costs incurred this period		541,040		270,327
Total costs	$	569,940	$	273,642

Units in beginning work in process (all completed during July)	4,300
Units started this period	44,000
Units completed and transferred out	43,500
Units in ending work in process	4,800

Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Costs Charged to Production
Total costs to account for	$0.00
Total costs accounted for
*Difference due to rounding cost/unit	$0.00
Unit Reconciliation
Units to account for
Total units to account for
Total units accounted for
Total units accounted for
Equivalent Units of Production (EUP)- Weighted Average Method
	Units	% Materials	EUPMaterials	% Conversion	EUPConversion
Equivalent units of production
Cost per EUP			Materials		Conversion
Total costs		Costs		Costs
Equivalent units of production		EUP		EUP
Cost per equivalent unit of production			0		0
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total transferred out
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials		$0.00
Conversion		$0.00
Total ending work in process
Total costs accounted for

2)

Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March.

Units			Costs
Beginning work in process inventory	4,000		Beginning work in process inventory
Started	40,000		Direct materials	$	6,320
Ending work in process inventory	8,000		Conversion		13,728
						$	20,048
Status of ending work in process inventory			Direct materials added				313,120
MaterialsPercent complete	100	%	Direct labor added				240,040
ConversionPercent complete	30	%	Overhead applied (140% of direct labor)				336,056
			Total costs to account for			$	909,264
			Ending work in process inventory			$	94,944

Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Total Costs to Account for:
Total costs to account for:	$0
Total costs accounted for
Difference due to rounding cost/unit	$0
Unit Reconciliation:
Units to account for:
Total units to account for
Total units accounted for:
Total units accounted for
Equivalent Units of Production (EUP)- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
Total units
Cost per Equivalent Unit of Production			Materials		Conversion
Total costs		Costs		Costs
Equivalent units of production		EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)			0		0
Total Costs Accounted for:
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total costs transferred out
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials		$0.00
Conversion		$0.00
Total cost of ending work in process
Total costs accounted for

3)

Sierra Company manufactures woven blankets and accounts for product costs using process costing. The company uses a single processing department. The following information is available regarding its May inventories

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	54,000		$	15,000
Work in process inventory		402,500			571,000
Finished goods inventory		638,000			107,001

The following additional information describes the company's production activities for May.

Raw materials purchases (on credit)	$	260,000
Factory payroll cost (paid in cash)		1,576,000
Other overhead cost (Other Accounts credited)		40,500
Materials used
Direct	$	217,000
Indirect		82,000
Labor used
Direct	$	790,000
Indirect		786,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	2,500,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

A) Compute the cost of products transferred from production to finished goods and cost of goods sold.

Raw Materials (RM)					Work in Process (WIP)
RM - April 30		Indirect materials			WIP - April 30		Cost of goods manuf.
RM purchases		DM used			DM used
					DL used
					Overhead applied
RM- May 31					WIP - May 31
Factory Payroll Payable					Finished Goods (FG)
Total Factory PR paid		Indirect labor			FG - April 30		Cost of goods sold
		DL used			Cost of goods manuf.
Factory Overhead					Income Statement (partial)
Indirect materials		Overhead applied			Sales
Indirect labor					Cost of goods sold
Other overhead costs					Gross profit	$0

B) Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.