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
Exercise 16-12 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.)

Units Transferred Out $ 663750

Work In Process Ending $ 30440

Direct Materials Costs  $ 11.5 per EUP   Conversion  Costs$6.2 per  EUP

Explanation:

Ashad Company

Weighted Average Method

Cost Of Production Report

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 Added

                                                    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

Costs per EUP

                                                Direct Materials           Conversion

                                $454,250/ 39,500 EUP         $239,940/38,700 EUP

                                     =  $ 11.5 per EUP                        = $6.2 per  EUP

Dividing the costs with EUP gives cost per EUP.

Costs Accounted For

Units Transferred Out $ 663750

Materials = $ 11.5 * 37500=$  431250

Conversion= $ 6.2 * 37500=$ 232500

Total = $ 663750

Work In Process Ending $ 30440

Materials = $ 11.5 * 2000=$  23000

Conversion= $ 6.2 * 1200=$ 7440

Total = $ 30440

Now adding the costs of Transferred out units and the ending work in process inventory equals the total of the costs added.

$ 663750+$ 30440 = $454,250 + $239,940

$ 694190 = $ 694190