Required intormation Use the following information for the Exercises below. [The

Question

Required intormation 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. Direct Conversio Equivalent Units of Production Materials Units transferred out Units of ending work in processS Equivalent units of production39,5ee 37,500 EUP 2,800 EUP EUP 37, 500 EUP 1,200 EUP 38,700 EUP Direct Materials Conversion Costs per EUP Costs of beginning work in process Costs incurred this period Total costs 13,45 1,860 238,e80 440, 800 $454,250 $239,940 Units in beginning work in process (all completed during July) 1,500 Units started this period Units completed and transferred out Units in ending work in process 38,000 37,500 2,800

Explanation / Answer

1) Costs charged to production: Costs of beginning work in process $       15,310 Costs incurred this period $   6,78,880 Total cost to account for $   6,94,190 Total costs accounted for $   6,94,190 Difference due to rounding cost/unit 0 Working: Material Conversion Total Costs of beginning work in process $       13,450 $             1,860 $           15,310 Costs incurred this period $   4,40,800 $       2,38,080 $        6,78,880 Total $        6,94,190 2) Unit Reconcilation: Units to account for: Beginning units in process              1,500 Units started during this period           38,000 Total units to be accounted for           39,500 Total Units accounted for: Units completed           37,500 Units in ending work in process              2,000 Total Units accounted for           39,500 3) Units % Materials EUP-Materials % Conversion EUP-Conversion Units completed           37,500 100%                 37,500 100%                     37,500 Units in ending work in process              2,000 100%                   2,000 60%                       1,200 Equivalent units of production           39,500                 39,500                     38,700 4) Materials Conversion Beginning Cost $           13,450 $               1,860 Cost incurred during this period $       4,40,800 $         2,38,080 Total costs $       4,54,250 $         2,39,940 / Equivalent units of production               39,500                 38,700 Cost per equivalent unit of production $             11.50 $                 6.20 5) Cost assignment and reconcilation: EUP Cost per Total cost EUP Costs transferred out: Direct Materials               37,500 $               11.50 $        4,31,250 Conversion               37,500 $                 6.20 $        2,32,500 Total transferred out $             6,63,750 Costs of ending work in process: Direct Materials                 2,000 $               11.50 $           23,000 Conversion                 1,200 $                 6.20 $              7,440 Total ending work in process $                30,440 Total costs accounted for $             6,94,190

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