Question

K Corporation uses the welghted-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 1,200 $ 7,600 Materials costs S2,900 558 Conversion costs Percent complete with respect to materials Percent complete with respect to conversion 258 7,100 Units started into production during the month Units completed and transferred to the next department during the month 6,300 $110,700 Materials costs added during the month s 83,800 Conversion costs added during the month Ending work in process inventory: 2,000 Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 70% 558 The total cost of units completed and 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

Correct answer-----------$170,603

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	6,300			100%	6,300.0	100%	6,300
Closing WIP	2,000			70%	1,400.0	55%	1,100
Total	8,300			Total	7,700.0	Total	7,400

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 7,600	$ 2,900	$ 10,500
Cost incurred during period		$ 110,700	$ 83,800	$ 194,500
Total Cost to be accounted for		$ 118,300	$ 86,700	$ 205,000
Total Equivalent Units		7,700	7,400
Cost per Equivalent Units		$            15.36	$           11.72

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit			Transferred
				Units	Cost Allocated
Material	$ 15.36			6,300	$ 96,791
Conversion cost	$ 11.72			6,300	$ 73,812
TOTAL	$ 205,000			TOTAL	$ 170,603