Use the following information for the Exercises below. [The following informatio
ID: 2550878 • Letter: U
Question
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.
Equivalent Units of Production
Direct Materials
Conversion
Units transferred out
37,500
EUP
37,500
EUP
Units of ending work in process
2,000
EUP
1,200
EUP
Equivalent units of production
39,500
EUP
38,700
EUP
Costs per EUP
Direct Materials
Conversion
Costs of beginning work in process
$
13,450
$
1,860
Costs incurred this period
440,800
238,080
Total costs
$
454,250
$
239,940
Units in beginning work in process (all completed during July)
1,500
Units started this period
38,000
Units completed and transferred out
37,500
Units in ending work in process
2,000
Equivalent Units of Production
Direct Materials
Conversion
Units transferred out
37,500
EUP
37,500
EUP
Units of ending work in process
2,000
EUP
1,200
EUP
Equivalent units of production
39,500
EUP
38,700
EUP
Exercise 20-12 Weighted average: Completing a process cost summary LO C3 Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.) Costs Charged to Production Total costs to account for Total costs accounted for Difference due to rounding cost/unit Unit Reconciliation Units to account for Total units to account for Total units accounted for Total units accounted for Equivalent Units of Production (EUP)- Weighted Average Method EUP- Conversion Units % Materials EUP-Materials % Conversion Equivalent units of production Cost per EUP Materials Conversion Total costs ÷ Equivalent units of production Cost per equivalent unit of production Costs Costs EUP EUPExplanation / Answer
Costs charged to production Cost of Beginning Work-in-Process 14310 Costs incurred during the month 678880 Total cost to acount for 693190 Units reconciliation Units to account for Begining Work-in-Process 1500 Started during the period 38000 Total Units to acount for 39500 Units accounted for Finished and transferred out 37500 Ending work-in-process 2000 Total units acounted for 39500 Equivalent units of production (EUP) - Weighted Average Method Materials Conversion Units % EUP % EUP Finished and transferred out 37500 100% 37500 100% 37500 Ending work-in-process 2000 100% 2000 60% 1200 Equivalent Units of Production 39500 38700 Cost per EUP Materials Conversion Beginning Work-in-Process 13450 1860 Costs incurred during the period 440800 238080 Total Costs Costs 454250 Costs 239940 Equivalent units of production EUP 39500 EUP 38700 Cost per EUP 11.50 6.20 Cost Assignment and Reconciliation EUP Cost per EUP Total Cost Costs Transferred out Direct materials 37500 11.50 431250 Conversion 37500 6.20 232500 Total transferred out 663750 Costs of ending work-in-process Direct materials 2000 11.50 23000 Conversion 1200 6.20 7440 Total ending work-in-process 30440 Total Costs accounted for 694190