Title: Exercise 20-15
QA_Ori:
ASHAD COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended July 31
Costs Charged to Production
Unit Cost Information
Units to Account For Units Accounted For
Equivalent Units of Production (EUP)
Direct
Materials
Direct
Labor
Factory
Overhead
Cost per EUP
Direct
Materials
Direct
Labor
Factory
Overhead
Costs of beginning goods in process…………. $ 18,550 $ 760 $ 1,520
Costs incurred this period………………………… 357,500 62,890 125,780
Cost Assignment and Reconciliation
Costs transferred out
Direct materials (32,000 x $10.90)………………………………….$348,800
Title: Exercise 20-16
QA_Ori:
ASHAD COMPANY
Process Cost Summary – FIFO Method
For Month Ended July 31
Costs Charged to Production
Costs of beginning goods in process
Direct materials…………………………………………………………. $ 18,550
Direct labor……………………………………………………………….. 760
Unit cost information
Units to account for Units accounted for
Equivalent units of production
Direct
Materials
Direct
Labor
Factory
Overhead
Units to complete beginning goods in process
Direct materials (2,000 x 0%)…………………………. 0 EUP
[Continued on next page]
Cost per EUP
Direct
Materials
Direct
Labor
Factory
Overhead
Cost assignment and reconciliation
Costs transferred out
Cost of beginning goods in process…………………………. $20,830
Cost to complete beginning goods in process
Title: Exercise 20-17
QA_Ori:
1. Process operation. 7. Job order operation.
2. Process operation. 8. Process operation.
Note: Reasonable arguments can be made to classify #7 and #11 as being made in a
process operation, and #8 in a job order operation, in some cases.
Title: Exercise 20-18
QA_Ori:
a. Job order operation. e. Job order operation.
Title: Exercise 20-19
QA_Ori:
A hybrid costing system contains features of both process costing and job order
Products or services that might well fit a hybrid costing system would be those
Title: Exercise 20-20
QA_Ori:
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
Goods completed (191,500 EUP x 100%)………………………………. 191,500
2. Beginning inventory is 50% complete with respect to materials.
Ending inventory is 50% complete with respect to materials.
Units of
EUP for Materials Product
Goods completed (191,500 EUP x 100%)………………………………. 191,500
Title: Exercise 20-21
QA_Ori:
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
To complete beginning work in process (31,500 EUP x 0%)…………… 0
2. Beginning inventory is 50% complete with respect to materials.
Ending inventory is 50% complete with respect to materials.
Units of
EUP for Materials Product
To complete beginning work in process (31,500 EUP x 50%)…………. 15,750
*Units started and completed = Units completed – Beginning goods in process
** Ending goods in process = Beginning goods in process + Goods started – Goods completed