Question

Please explain

Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Equivalent units in ending work in process inventory Cost per equivalent unit Materials 2,100 $15.56 Conversion 820 $ 4.63 A total of 21,300 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total (Round your final answers to the nearest whole dollar amount.) Materials Conversion Total 1. Cost of ending work in process inventory 2. Cost of units transferred out

Answer 1

Solution

	Material	Conversion	Total
Cost of Ending Work in process Inventory	$ 32,676	$ 3,797	$ 36,473
Units Completed and transferred	$ 331,428	$ 98,619	$ 430,047

Working

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 15.56	2,100	$          32,676.00	21,300	$ 331,428
Conversion cost	$ 4.63	820	$             3,796.60	21,300	$          98,619.00
TOTAL	$ 466,520	TOTAL	$ 36,473	TOTAL	$ 430,047