Question

Exercise 16-15 Weighted average: Completing a process costsummary LO C3

The following partially completed process cost summary describesthe July production activities of Ashad Company. Its productionoutput is sent to its warehouse for shipping. All direct materialsare added to products when processing begins. Beginning goods inprocess inventory is 20% complete with respect to direct labor andoverhead. Ending work in process inventory is 60% complete withrespect 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-averagemethod. (Round "Cost per EUP" to 2 decimalplaces.)

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 averagemethod
	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