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re https ?returnUrfs https%3A%2F%2F %2Fpaamweb%2Findechtml er 16 0 Required information of 2 The following information applies to the questions displayed below The tollowing partially completed process cost summary describes the July production activities of Ashad Company. I 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. Materlals Units of ending work in process tquivalent units of production Direct s 13,4501,860 454,250239,940 Costs of beginning work in process Costs incurred this perlod Print units in begioning work in process (all completed during July) Units started this period Units conpleted and transferred out Units in ending work in process ences 2,000 Prepare its process cost summary using the weighted-average method (Round "Cost per EUP to 2 decimal places. Prov 2 3 of Next>Explanation / Answer
Ashad Company Given Data Equivalent Units of Production Direct Material Conversion Units transferred out 37500 37500 Units of ending goods in process 2000 1200 Equivalent Units of Production 39500 38700 Cost Data Costs of beginning WIP $ 13,450.00 $ 1,860.00 Cost incurred this period $ 4,40,800.00 $ 2,38,080.00 Total Costs $ 4,54,250.00 $ 2,39,940.00 Units in beginning WIP(all completed during July) 1500 Units started this period 38000 Units completed and transferred out 37500 Units in Ending WIP 2000 Ans) Cost Summary using the Weighted Average Method Cost of beginning WIP $ 15,310.00 Cost incurred this period $ 6,78,880.00 Total cost to account for $ 6,94,190.00 Total cost accounted for $ 6,94,190.00 Difference due to rounding cost/Unit $ - Unit Reconciliation Units to account for Beginning WIP 1500 Units started this period 38000 Total Units to account for 39500 Total Units to account for Completed and transferred out 37500 Ending WIP 2000 Total Units to account for 39500 % completed of Ending WIP=(1200/2000)=60% Equivalent units of Production(EUP) -Weighted Average Method Units % Completed(Material) EUP-Material % completed(Labor) EUP-Labor Units completed and transferred out 37500 100% 37500 100% 37500 Units in Ending WIP 2000 100% 2000 60% 1200 EQuivalent units of Production(EUP)=(A) 39500 39500 38700 Cost per Equivalent Units Cost of beginning WIP $ 13,450.00 $ 1,860.00 Cost incurred this period $ 4,40,800.00 $ 2,38,080.00 Total Costs=(B) $ 4,54,250.00 $ 2,39,940.00 Cost per Equivalent Units=Total Cost/Equivalent Units=(B)/(A) $ 11.50 $ 6.20 Reconciliation Cost of Transferred out units Equivalent Units of Production Cost per Equivalent Units Total Costs Direct Material 37500 $ 11.50 $ 4,31,250.00 Direct Labor 37500 $ 6.20 $ 2,32,500.00 Total Transferred out cost $ 6,63,750.00 Cost of Ending WIP Direct Material 2000 $ 11.50 $ 23,000.00 Direct Labor 1200 $ 6.20 $ 7,440.00 Total of Ending WIP $ 30,440.00 Total cost accounted for($663750+$30440) $ 6,94,190.00
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