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Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The following partially completed process cost summary describes
Use the following information for the Exercises below.
[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.
| Equivalent Units of Production | Direct Materials | Conversion | ||||
| Units transferred out | 42,000 | EUP | 42,000 | EUP | ||
| Units of ending work in process | 3,500 | EUP | 2,100 | EUP | ||
| Equivalent units of production | 45,500 | EUP | 44,100 | EUP | ||
| Costs per EUP | Direct Materials | Conversion | ||||||
| Costs of beginning work in process | $ | 32,950 | $ | 4,260 | ||||
| Costs incurred this period | 531,250 | 308,850 | ||||||
| Total costs | $ | 564,200 | $ | 313,110 | ||||
| Units in beginning work in process (all completed during July) | 3,000 |
| Units started this period | 42,500 |
| Units completed and transferred out | 42,000 |
| Units in ending work in process | 3,500 |
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