Question

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process and Zeus uses the weighted-average process costing method of accounting for production.

Below is the company's calculation of cost per equivalent unit for October. During October, the company

completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.

Prepare a schedule showing the allocation of total cost between finished goods and ending work in process.

Costs per equivalent unit :
			Conversion
	Total Cost	Direct Materials	Direct Labor	Factory Overhead
Beginning Work in Process	$3,900,000	$1,170,000	$780,000	$1,950,000
Cost incurred during period	9,300,000	2,000,000	2,325,000	$5,115,000
Total cost	$13,340,000	$3,170,000	$3,105,000	$7,065,000
Equivalent units		10,400	9,600	9,600
Costs per equivalent unit		$304.81	$323.44	$735.94
			$1,059.38
		$1,364.19

	A.	Transferred to Finished Goods $12,831,980 Total Ending Work in Process $3,029,997 Total Cost Allocation $15,861,894
	B.	Transferred to Finished Goods $8,831,354 Total Ending Work in Process $5,029,231 Total Cost Allocation $13,860,585
	C.	Transferred to Finished Goods $10,913,520 Total Ending Work in Process $2,426,552 Total Cost Allocation $13,340,072
	D.	Transferred to Finished Goods $14,833,934 Total Ending Work in Process $1,229,566 Total Cost Allocation $16,863,500
	E.	Transferred to Finished Goods $12,831,574 Total Ending Work in Process $8,029,903 Total Cost Allocation $18,861,875

Answer 1

			materials	CC
completed & transferred			8000	8000
Ending work in process			2400	1600
Equivalent units			10400	9600
Transferred to finished goods			8000*1364.183=			10913520
ending work in process
Materials			2400*304.81=		731544
direct labor			1600*323.44=		517504
conversion			1600*735.9375		1177504	2426552
total cost allocation						13340072
answer)	option c