Question

K 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: 1,900 $ 8,300 $ 3,600 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 completed and 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 25% 7,800 7,000 $111,400 $ 84,500 2,700 Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 70% 559 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) Multiple Choice $190,913

Answer 1

Correct answer---$166,936

Working note

		Units
Reconciliation of Units
A	Opening WIP	1,900
B	Introduced	7,800
C=A+B	TOTAL	9,700
D	Transferred	7,000
E=C-D	Closing WIP	2,700

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	7,000	100%	7,000	100%	7,000
Closing WIP	2,700	70%	1,890	55%	1,485
Total	9,700	Total	8,890	Total	8,485

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$         8,300	$            3,600	$             11,900
Cost incurred during period	$     111,400	$          84,500	$           195,900
Total Cost to be accounted for	$     119,700	$          88,100	$           207,800
Total Equivalent Units	8,890	8,485
Cost per Equivalent Units	$       13.465	$          10.383

Statement of cost
Cost	Equivalent Cost/unit	Transferred
		Units	Cost Allocated
Cost Transferred		-	$                    -
Material	$           13.465	7,000	$    94,255.00
Conversion Cost	$           10.383	7,000	$    72,681.00
		TOTAL	$        166,936