Save & Exit Help Check my er 16 0 Required information The folowing partially co

Question

Save & Exit Help Check my er 16 0 Required information The folowing 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. The following information applies to the questions displayed below atecials conversion thits of ending work in process tquivalent snits of preduction 2-500 EUP1.500 EU 40,500 EUP 39,500 EUP Costs of beginning vork in Costs incurred this period 19, 350 2, 520 450-450 246,330 469,800 248,850 Units in beginning work in process (al1 completed during Ju1y) its started this period nits conpleted and transferred out tnits in anding work in process 2,000 38,500 38,000 2,500 7 0 de GH

Explanation / Answer

As per the EUP(Equivalenyt units of production) information given , the company follows weighted average method.

Hence the costs incurred during July are assigned to finished production and to the ending inventory.

Working:

Cost reconciliation Total costs to account for Beginning inventory 21870 cost incurred in july 696780 718650 Total Cost accounted for Cost of finished goods 681490 Cost of ending inventory 37160 718650 Units reconciliation Beginning inventory 2000 started in july 38500 Total units to account for 40500 Finished and transferred 38000 Ending inventory 2500 Total units accounted for 40500

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