Oslo Company produces large quantities of a standardized product. The following
ID: 2334079 • Letter: O
Question
Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May Units Beginning work in process inventory Started Ending work in process inventory Costs 4,000 Beginning work in process inventory 12,000 3,000 Direct materials Conversion $ 2,880 5,358 $ 8,238 197,120 123,680 111,312 $440, 350 $ 50,616 Status of ending work in process inventory Direct materials added Materials-Percent complete Conversion-Percent complete 100% Direct labor added 25% Overhead applied (90% of direct labor) Total costs to account for Ending work in process inventory 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 Total costs accounted for Difference due to rounding cost/unit nit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted forExplanation / Answer
Answers
Total Cost to account for:
Cost of beginning WIP
$ 8,238.00
Costs incurred this period
$ 432,112.00
Total Cost to account for
$ 440,350.00
Total costs accounted for
$ 440,350.00
Difference due to rounding cost/unit
$ -
Units Reconciliation
Units to account for:
Beginning WIP
4,000
Units started this period
12,000
Total Units to account for
$ 16,000.00
Total Units accounted for:
Completed & Transferred out
13,000
Ending WIP
3,000
Total Units accounted for
$ 16,000.00
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
13,000
100%
13,000
100%
13,000
Units of ENDING WIP
3,000
100%
3,000
25%
750
Equivalent Units of Production
16,000
13,750
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 2,880.00
$ 5,358.00
Cost incurred during the period
$ 197,120.00
$ 234,992.00
Total Costs
Costs
$ 200,000.00
Costs
$ 240,350.00
Equivalent units of production
EUP
16,000
EUP
13,750
Cost per EUP
$ 12.50
$ 17.48
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
13,000
$ 12.50
$ 162,500.00
- Conversion
13,000
$ 17.48
$ 227,240.00
Total Cost transferred Out
$ 389,740.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
3,000
$ 12.50
$ 37,500.00
- Conversion
750
$ 17.48
$ 13,110.00
Total cost of ending WIP
$ 50,610.00
Total costs accounted for
$ 440,350.00
Total Cost to account for:
Cost of beginning WIP
$ 8,238.00
Costs incurred this period
$ 432,112.00
Total Cost to account for
$ 440,350.00
Total costs accounted for
$ 440,350.00
Difference due to rounding cost/unit
$ -
Units Reconciliation
Units to account for:
Beginning WIP
4,000
Units started this period
12,000
Total Units to account for
$ 16,000.00
Total Units accounted for:
Completed & Transferred out
13,000
Ending WIP
3,000
Total Units accounted for
$ 16,000.00
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