The following partially completed process cost summary describes the July production activities of Ashad Company. Its...

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Accounting

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 work inprocess inventory is 20% complete with respect toconversion.
Equivalent Units of Production
Direct Materials
Conversion
Units transferred out
35,000
EUP
35,000
EUP
Units of ending work in process
2,500
EUP
1,500
EUP
Equivalent units of production
37,500
EUP
36,500
EUP
Costs per EUP
Direct Materials
Conversion
Costs of beginning work in process
$
18,450
$
2,280
Costs incurred this period
394,050
205,770
Total costs
$
412,500
$
208,050
Units in beginning work in process (all completed duringJuly)
2,000
Units started this period
35,500
Units completed and transferred out
35,000
Units in ending work in process
2,500

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Solution Computation of Cost per equivalent unit of Production Weighted Average Ashad Company Particulars Material Conversion Opening WIP 1845000 228000 Cost Added during July 39405000 20577000 Total cost to be See Answer

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Equivalent Units of Production	Direct Materials			Conversion
Units transferred out		35,000	EUP		35,000	EUP
Units of ending work in process		2,500	EUP		1,500	EUP
Equivalent units of production		37,500	EUP		36,500	EUP

Costs per EUP	Direct Materials			Conversion
Costs of beginning work in process		$	18,450		$	2,280
Costs incurred this period			394,050			205,770
Total costs		$	412,500		$	208,050


Units in beginning work in process (all completed duringJuly)	2,000
Units started this period	35,500
Units completed and transferred out	35,000
Units in ending work in process	2,500