Question

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 2,000 $ 8,400 $ 3,700 55% 25% 7,900 7,100 $111,500 $ 84,600 2,800 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.)

Answer 1

Production report using weight Average Method Equivalent units for Material and Conversion cost Equivalent Unit Material Conversion Physical units Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 7100 2800 9900 7100 1960 9060 7100 1540 8640 Ending WIP = Units in ending WIP * Percentage complete 2800 x 70% 2800 x 55% Cost Per Equivalent Unit Material Conversion Total cost Cost To be accounted For:- Beginning work in process Cost added during month Total Cost $ $ $ $ 8,400 111,500 119,900 $ $ $ 3,700 $ 84,600 $ 88,300 $ 12,100 (Given) 196,100 (Given) 208,200 (A) (B) Equivalent Units Cost per unit 9060 13.234 8640 10.220 (A)/(B) $ $ $ 23.454 Cost of goods Transferred out Units Completed & Transferred out:- Material Conversion Total Cost of units completed & Transferred out $ $ 93,961.369 72,561.343 (7100 units x $13.23 ) (7100 units x $10.22 ) 166,523 Total cost transferred from first department to next department is $166,523.