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		1,200
Materials costs	$	7,600
Conversion costs	$	2,900
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		7,100
Units transferred to the next department during the month		6,300
Materials costs added during the month	$	110,700
Conversion costs added during the month	$	83,800
Ending work in process inventory:
Units in ending work in process inventory		2,000
Percent complete with respect to materials		70	%
Percent complete with respect to conversion		55	%

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places. Round "Cost of ending work in process inventory" to the nearest whole dollar amount.)

Answer 1

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to $34,397
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Opening WIP	1,200.00	100%	1,200.00	1,200.00	100%	1,200.00
Units started and completed =6300- 1200	5,100.00	100%	5,100.00	5,100.00	100%	5,100.00
ending WIP= 7100-5100	2,000.00	70%	1,400.00	2,000.00	55%	1,100.00
Equivalent Units			7,700.00			7,400.00
Opening WIP Costs			7,600.00			2,900.00	10,500.00
Current Month Costs			110,700.00			83,800.00	194,500.00
Total costs			118,300.00			86,700.00	205,000.00
Cost per Equivalent units			15.36			11.72
Ending WIP Units			1,400.00			1,100.00
Cost of Ending WIP			21,509.09			12,887.84	34,396.93