Question

Mullins Corporation uses the first in, first-out 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 see $ 11,700 $ 22,300 755 655 8,800 8,000 $ 161,300 $ 350, 500 1,500 65% Sex The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to (Round equivalent units to the nearest whole number and round all other intermediate cakulations to 3 decimal places.)

Answer 1

	Units	Percentage of Completion -    Materials	Equivalnet Unit of Production - Materials	Percentage of Completion - Conversion	Equivalnet Unit of Production -Conversion
Units transferred	8,000	100%	8,000	100%	8,000
Units of ENDING WIP	1,600	65%	1,040	50%	800
Equivalent Units of Production			9,040		8,800
	Material	Conversion
Beginning WIP Costs	$ 11,700	$ 22,300
Add: Cost incurred	$ 161,300	$ 350,500
Total Costs	$ 173,000	$ 372,800
Equivalent units of production	9,040	8,800
Cost per Equivalent Unit	$ 19.137	$ 42.364
Cost of ending WIP Inventory        = (1,040 x $ 19.137 ) + ( 800 x $ 42.364 )        =   $ 19,902.48 + $ 33,891.20	$ 53,794