The following partially completed process cost summary describes
the July production activities of the Molding department at Ashad
Company. Its production output is sent to the next department. 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 40,500 EUP 40,500 EUP Units of
ending work in process 2,500 EUP 1,500 EUP Equivalent units of
production 43,000 EUP 42,000 EUP Costs per EUP Direct Materials
Conversion Costs of beginning work in process $ 20,100 $ 2,720
Costs incurred this period 500,200 282,880 Total costs $ 520,300 $
285,600 Units in beginning work in process (all completed during
July) 2,000 Units started this period 41,000 Units completed and
transferred out 40,500 Units in ending work in process 2,500
The following partially completed process cost summary describes
the July production activities of the Molding department at Ashad
Company. Its production output is sent to the next department. 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 |
|
40,500 |
EUP |
|
40,500 |
EUP |
| Units of ending work in process |
|
2,500 |
EUP |
|
1,500 |
EUP |
| Equivalent units of production |
|
43,000 |
EUP |
|
42,000 |
EUP |
|
| Costs per EUP |
Direct Materials |
Conversion |
| Costs of beginning work in process |
|
$ |
20,100 |
|
|
$ |
2,720 |
|
| Costs incurred this period |
|
|
500,200 |
|
|
|
282,880 |
|
| Total costs |
|
$ |
520,300 |
|
|
$ |
285,600 |
|
|
Units in beginning work in process (all completed during July)
2,000
Units started this period 41,000
Units completed and transferred out 40,500
Units in ending work in process 2,500
|
|
| Costs Charged to Production |
|
|
| Cost of beginning work in process |
$2,000.00 |
| Units of beginning work in process |
41,000.00 |
| Total costs to account for |
$43,000.00 |
| Total costs accounted for |
|
| * Difference due to rounding
cost/unit |
$0.00 |
| Unit reconciliation |
|
| Units to account for |
|
| Completed and transferred out |
40,500 |
| Ending work in process |
2,500 |
| Total units to account for |
43,000 |
| Total units accounted for |
|
|
|
|
|
| Total units accounted for |
|
| Equivalent units of production (EUP) -
FIFO method |
|
Units |
% Materials |
EUP- Materials |
% Conversion |
EUP- Conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
| Cost per EUP |
|
|
Materials |
|
Conversion |
|
|
|
|
|
|
| Total costs |
|
Costs |
|
Costs |
|
| ÷ Equivalent units of production |
|
EUP |
|
EUP |
|
| Cost per EUP (rounded to 2
decimals) |
0 |
|
0 |
| Cost assignment and reconciliation |
|
|
|
|
|
| Costs transferred out |
EUP |
Cost per EUP |
Total cost |
|
|
| Cost of beginning work in process |
|
|
|
$22,820.00 |
|
| Cost to complete beginning work in
process |
|
|
|
|
|
| Direct materials |
|
|
|
|
|
| Conversion |
|
|
|
|
|
| Total cost to complete beginning work
in process |
|
|
|
|
|
| Costs of units started and completed
this period |
EUP |
Cost per EUP |
Total cost |
|
|
| Direct materials |
|
$0.00 |
|
|
|
| Conversion |
|
$0.00 |
|
|
|
| Total costs started and completed this
period |
|
|
|
|
|
| Total cost of work finished this
period |
|
|
|
$22,820.00 |
|
| Costs of ending work in process |
EUP |
Cost per EUP |
Total cost |
|
|
| Direct materials |
|
$0.00 |
|
|
|
| Conversion |
16,600 |
$0.00 |
|
|
|
| Total cost of ending work in
process |
|
|
|
|
|
| Total costs accounted
for |
|
|
|
|
|
