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 |
|
