Question

Data concerning a recent period's activity in the Prep Department, the first processing depart costing, appear below: Equivalent units in ending work in process inventory Cost per equivalent unit Materials Conversion 2,010920 $ 15.86 $ 4.73 A total of 21,900 units were completed and transferred to the next processing department d Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in tot 2. Compute the cost of the units completed and transferred out for materials, conversion, ar (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

Prep Department

1. Cost of ending work in process
Materials = 2010 x $15.86 = $31879
Conversion = 920 x $4.73 = $4352
Total = $36231 or $36230

2. Cost of units transferred out
Materials = 21900 x $15.86 = $347334
Conversion = 21900 x $4.73 = $103587
Total = $450921

Maria Am

Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory
Costs added to the production during the year
Total Costs to be accounted for
Cost of Ending work in Process Inventory
Cost of units transferred out
Total Costs accounted for

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