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		1,600
Materials costs	$	8,000
Conversion costs	$	3,300
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		7,500
Units transferred to the next department during the month		6,700
Materials costs added during the month	$	111,100
Conversion costs added during the month	$	84,200
Ending work in process inventory:
Units in ending work in process inventory		2,400
Percent complete with respect to materials		70	%
Percent complete with respect to conversion		55	%

The total cost transferred from the first processing department to the next processing department during the month is closest to:

Answer 1

The total cost transferred from the first processing department to the next processing department during the month is closest to:$168,322

Reconciliation of Units
A	Opening WIP	1,600
B	Introduced	7,500
C=A+B	TOTAL	9,100
D	Transferred	6,700
E=C-D	Closing WIP	2,400

Statement of Equivalent Units
				Material		Conversion Cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	6,700			100%	6,700	100%	6,700
Closing WIP	2,400			70%	1,680	55%	1,320
Total	9,100			Total	8,380	Total	8,020

Cost per Equivalent Units
COST		Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost		$               8,000	$            3,300	$                  11,300
Cost incurred during period		$         1,11,100	$          84,200	$               1,95,300
Total Cost to be accounted for		$         1,19,100	$          87,500	$               2,06,600
Total Equivalent Units		8,380	8,020
Cost per Equivalent Units		$               14.21	$            10.91

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 14.21	1,680	$    23,876.85	6,700	$    95,223.15
Conversion Cost	$ 10.91	1,320	$    14,401.50	6,700	$    73,098.50
TOTAL		TOTAL	$          38,278	TOTAL	$       1,68,322