The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. All direct materials are added to products when processing begins. Beginning process inventory is 20% complete with respect to conversion.
Prepare its cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does ! Required information [The following information applies to the questions displayed below.] The following partially completed process cost summary describes the July production activities of the Molding department at Ashad Company. Its production output is sent to the next department. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion. Direct Equivalent Units of Production Materials Conversion Units transferred out 39, 500 EUP 39, 500 EUP Units of ending work in process 4, 000 EUP 2, 400 EUP Equivalent units of production 43, 500 EUP 41, 900 EUP Direct Costs per EUP Materials Conversion Costs of beginning work in process $ 37, 650 Costs incurred this period 480, 000 5 4, 620 271, 920 Total costs $ 517, 650 $ 276, 540 Units in beginning work in process (all completed during July) Units started this period 3, 500 Units completed and transferred out 40, 000 Units in ending work in process 39, 500 4,000 Prepare itsx Answer is complete but not entirely correct. Costs Charged to Production Costs of beginning work in process $ 42,270.00 Costs incurred this period |751,920.00 Total costs to account for $ 794, 190.00 Total costs accounted for 669,600.00 *Difference due to rounding cost/unit $ 124,590.00 Unit Reconciliation Units to account for Beginning work in process 3,500 Units started this period 40,000 Total units to account for 43,500 Total units accounted for Completed and transferred out 39,500 4,000 + Ending work in process Total units accounted for 43,500 Equivalent Units of Production (EUP)- Weighted Average Method Units EUP- % EUP Materials Materials Conversion Conversion Units to complete beginning work in process X 3,500 X 100% OX 80% X 2,800 X Units of ending work in process 4,000 100% 4,000 60% 2,400 Equivalent units of production 7,500 4,000 i.200 Cost per EUP Materials Conversion Costs incurred this period $ 480,000 $ 271,920 Costs transferred out X 40,000 X 41,200 X Total costs Costs $ 520,000 Costs $ 313, 120 + Equivalent units of production EUP 12 X EUP 7 X Cost per equivalent unit of production 43,333.33 $ 44,731.43 Cost Assignment and Reconciliation Costs transferred out EUP Cost per EUP Total cost Direct materials x $ 12.00 X Conversion 2,800 X $ 6.60 18,480.00 Total transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials 36,000 x $ 12.00 Conversion 432,000.00 36,000 x $ 6.60 237,600.00 Total ending work in process Total costs accounted for 669,600.00 $ 669,600.00
