Question

rtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		1,000
Materials costs	$	7,400
Conversion costs	$	2,700
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		6,900
Units transferred to the next department during the month		6,100
Materials costs added during the month	$	110,500
Conversion costs added during the month	$	83,600
Ending work in process inventory:
Units in ending work in process inventory		1,800
Percent complete with respect to materials		70	%
Percent complete with respect to conversion		55	%

The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 1,000 $ 7,400 $ 2,700 55% 25% 6,900 6,100 $110,500 $ 83,600 1,800 70% 55% The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.) Multiple Choice O $199.004 O $189,704 O $171965 O $214,694

Answer 1

Answer: Option-(c): $171,965 Workings: Under weighted average method, equivalent units are to be calculated only for units completed & transferred out and units lying as ending work in process as it is assumed that the units once entered into the process become integral part of total units and no segregation between units transferred from beginning work in process and introduced during current process. Conversion cost includes Labor + Overheads. So, Physical units of production: Units completed and transferred out Add: Units in ending inventory Less: Units in beginning inventory Units started during current period 6,100 1,800 -1,000 6,900 Particulars Whole Units EUP % EUP- Materials Conversion Conversion Materials 100% Completed and transferred Ending work in process Equivalent Units of Production (EUP) 6,100 1,800 7,900 6,100 1,260 7,360 100% 55% 70% 6,100 [6100 units x 100%; 6100 units x 100%] 990 [1800 units x 70%; 1800 units x 55%] 7,090

Cost per equivalent units of production Cost of beginning work in process Cost added during the period Total Costs Divided by Equivalent units of Production (EUP) Cost per Equivalent units of Production Materials $7,400 $110,500 $117,900 7,360 $16.019 Conversion $2,700 $83,600 $86,300 7,090 [As computed EUP schedule presented above) $12.172 ($117900 / 7360 units = $16.019; $86300 / 7090 units = $12.172] Cost of goods completed & transferred EUP Totals Cost per EUP $16.019 $12.172 Materials Conversion Total Cost of goods completed & transferred out 6,100 6,100 $97,716 [6100 units x $16.019] $74,249 [6100 units x $12.172] $171,965