Question

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,200 940 Cost per equivalent unit $ 15.26 $ 6.13 A total of 20,200 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total. (Round your final answers to the nearest whole dollar amount.)

Answer 1

Answer:

total ending WIP value        39,334.20

transferred-out                   432.078.00

Explanation:

Ending work in proces inventory

we multiply the equivalent units by the cost per equivlent unit

materials 2,200 x 15.26  =  33,572

converion  940  x   6.13  =    5,762.2

then, we add them to get thetotal value of the ending WIP

 total ending WIP value     39,334,2‬

for the transferred out, we add both equivalent cost as this are complete.

And multiply by the whole amount 20,200

trasnferred out: 20,200 x (15.26 + 6.13) = 432.078