Question

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,170 870 Cost per equivalent unit $ 15.56 $ 5.63 A total of 22,000 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.

Answer 1

1)	Cost of ending work in process
	Materials	2,170	*	15.56	=	33765.2
	CC	870	*	5.63	=	4898.1
	Cost of ending work in process					38663	answer
2)	cost of units completed
	Materials	22,000	*	15.56	=	342320
	CC	22000	*	5.63	=	123860
	cost of units completed					466180	answer