Exercise 20-9 (20 minutes)
1. Cost per EUP
Cost per equivalent unit – weighted-average
Direct
Materials Conversion
Costs of beginning inventory $118,472 $48,594
Exercise 20-9 (continued)
2.
Cost assignment and reconciliation – weighted-average
Costs of units transferred out
Direct materials (300,000 EUP x $2.65 per EUP) $795,000
Conversion costs (300,000 EUP x $2.15 per EUP) 645,000
Dept. 1 – WIP
Beg. Inv 167,066
Exercise 20-10 (20 minutes)
1.
Units Units
Units in beginning inventory 60,000 60,000 60,000
2.
Equivalent units of production – FIFO
Direct
Materials Conversion
Complete beginning inventory (60,000 x 40% Mtl, 60% Conv.) 24,000 36,000
Units started and completed (240,000 x 100%) 240,000 240,000
1.
Cost per equivalent unit – FIFO
Direct
Materials Conversion
Costs incurred this period 850,368 649,296
Exercise 20-11 (continued)
2.
Cost assignment and reconciliation – FIFO
Cost of 60,000 units from beginning inventory
Beginning inventory $ 167,066
Materials to complete (24,000 EUP x $2.58 per EUP) 61,920
Conversion to complete (36,000 EUP x $2.16 per EUP) 77,760 139,680
Total cost of 60,000 units from beginning inventory $ 306,746
Costs of units started and completed
Dept. 1 – WIP
Beg. Inv 167,066
Exercise 20-12 (30 minutes)
ASHAD COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended July 31
Costs Charged to Production
Costs of beginning work in process ($18,550 + $2,280)………................. $ 20,830
Unit Information
Units to Account For Units Accounted For
Equivalent Units of Production (EUP)
Direct
Materials Conversion
Units completed and transferred out....….32,000 EUP 32,000 EUP
Cost per EUP
Direct
Materials Conversion
Costs of beginning work in process.....…. $ 18,550 $ 2,280
Costs incurred this period......................... 357,500 188,670
Cost Assignment and Reconciliation
Costs transferred out
Direct materials (32,000 x $10.90)..…………………..............$348,800
Exercise 20-13 (40 minutes)
ASHAD COMPANY
Process Cost Summary – FIFO Method
For Month Ended July 31
Costs Charged to Production
Costs of beginning work in process
Direct materials………………………………………………………. $ 18,550
Unit cost information
Units to account for Units accounted for
Beginning work in process…………........................2,000 Completed & transferred out………... 32,000
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
Direct materials (2,000 x 0%)…………................ 0 EUP
Conversion (2,000 x 80%)…………..................... 1,600 EUP
[Continued on next page]
Exercise 20-13 (Concluded)
Cost per EUP
Direct
Materials
Conversio
n
Costs incurred this period.……........... $ 357,500 $ 188,670
Cost assignment and reconciliation
Costs transferred out
Cost of beginning work in process.…….................... $20,830
Cost to complete beginning work in process
Direct materials (0 EUP x $11.00 per EUP).............. $ 0
Conversion (1,600 EUP x $5.70 per EUP)…............. 9,120 9,120
Costs of units started and completed this period