Exercise 16-15 Weighted average: Completing a process cost summary LO C3 The fol
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Question
Exercise 16-15 Weighted average: Completing a process cost summary LO C3
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 goods in process inventory is 20% complete with respect to direct labor and overhead. Ending work in process inventory is 60% complete with respect to conversion.
Equivalent units of production
Direct Materials
Direct Labor
Factory Overhead
Units transferred out
127,000
127,000
127,000
Units of ending goods in process
15,000
9,000
9,000
Equivalent units of production
142,000
136,000
136,000
Costs
Direct Materials
Direct Labor
Factory Overhead
Costs of beginning goods in process
$
38,500
$
1,400
$
2,800
Costs incurred this period
856,100
168,600
337,200
Total costs
$
894,600
$
170,000
$
340,000
Units in beginning goods in process
(all completed during July)
8,000
Units started this period
134,000
Units completed and transferred out
127,000
Units in ending goods in process
15,000
Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Costs Charged to Production
Costs of beginning goods in process
$
42,700.00
Costs incurred this period
1,361,900.00
Total costs to account for
$
1,404,600.00
Total costs accounted for
*Difference due to rounding cost/unit
$
0.00
Unit reconciliation
Units to account for
Beginning goods in process
8,000
Units started this period
134,000
Total units to account for
142,000
Total units accounted for
Completed and transferred out
127,000
Ending goods in process
15,000
Total units accounted for
142,000
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Labor
EUP- Labor
% Overhead
EUP- Overhead
Equivalent units of production
Cost per EUP
Materials
Labor
Overhead
Total costs
Costs
Costs
Costs
÷ Equivalent units of production
EUP
EUP
EUP
Cost per equivalent unit of production
Cost Assignment and Reconciliation
Costs transferred out
EUP
Cost per EUP
Total cost
Direct materials
Direct labor
Factory overhead
Total transferred out
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
$
0.00
Direct labor
$
0.00
Factory overhead
$
0.00
Total ending goods in process
Total costs accounted for
sheet is drawn here
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 goods in process inventory is 20% complete with respect to direct labor and overhead. Ending work in process inventory is 60% complete with respect to conversion.
Explanation / Answer
Details Units % Material Equivalent Unit Materials % Conversion Eq Units Conversion Units Transferred Out 127,000 100 127,000 100 127,000 Units of ending WIP 15,000 100 15,000 60 9,000 Total; 142,000 142,000 136,000 Cost details Materials Direct Labor Factory Overhead Total Cost of beginning WIP 38,500 1,400 2,800 Cost incurred in this period 856,100 168,600 337,200 Total Cost to account for 894,600 170,000 340,000 1,404,600 Equivalent Units produced 142,000 136,000 136,000 Cost per Equivalent Unit $ 6.30 $ 1.25 $ 2.50 Cost of Units tarnsferred out Materials Direct Labor Factory Overhead Total Cost Eq units transferred out 127,000.00 127,000.00 127,000.00 Cost per Equivalent Unit 6.30 1.25 2.50 Total Cost 800,100.00 158,750.00 317,500.00 1,276,350.0 Cost of Units in closing WIP Materials Direct Labor Factory Overhead Total Cost Eq units in closing WIP 15,000.00 9,000.00 9,000.00 Cost per Equivalent Unit 6.30 1.25 2.50 Total Cost 94,500.00 11,250.00 22,500.00 128,250.00 Total Cost Accounted for $ 1,404,600
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