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 1,800 Materials costs $ 8,200 Conversion costs $ 3,500 Percent complete with respect to materials 55 %Percent complete with respect to conversion 25 %Units started into production during the month 7,700 Units transferred to the next department during the month 6,900 Materials costs added during the month $ 111,300 Conversion costs added during the month $ 84,400 Ending work in process inventory: Units in ending work in process inventory 2,600 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:Multiple Choice$191,812$182,512$167,366$207,502

Answer 1

Answer:

$167,366

Explanation:

First we calculate the total Cost per Unit equivalent

  Material    Conversion  

Units transferred to the next department    6.900   6.900  

Ending WIP    

Materials  70%  2.600 1.820  

Conversion Cost 55%  2.600  1.430

Equivalents Units Production    8.720 8.330

   

Cost of beginning work in process inventory   $ 8.200 $ 3.500

Costs added during the period   $ 111.300 $ 84.400

TOTAL COST   $ 119.500 $ 87.900

Equivalents Units Production    8.720 8.330

Cost per equivalent unit    13,70   10,55  

When the Cost per equivalent Unit was calculated then we have to aplly it to the total units transferred out.

Units completed and transferred out:    

Equivalent units of production (a)            6.900   6.900  

Cost per equivalent unit                            13,70   10,55  

Cost of ending work in process inventory  94.558   72.810  

  $ 167.369