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 1,500
Materials costs $ 7,900
Conversion costs $ 3,200
Percent complete with respect to materials 55 %
Percent complete with respect to conversion 25 %
Units started into production during the month 7,400
Units transferred to the next department during the month 6,600
Materials costs added during the month $ 111,000
Conversion costs added during the month $ 84,100

Ending work in process inventory:
Units in ending work in process inventory 2,300
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:
$192,401

$174,348

$201,701

$217,391

Answer 1

Answer:

$168,841 .2

Explanation:

Equivalent unit of material = Units transferred + Units in ending work × Material percentage

= 6,600 + (2,300 × 70%)

= 8,210

Equivalent unit of conversion =  Units transferred + Units in ending work × conversion percentage

6,600 + (2,300 × 55%)

= 7,865

Cost per equivalent unit of material = (Beginning Materials costs + Materials costs during the months) ÷ Equivalent unit of material

= ($7,900 + $111,000) ÷ 8,210

= $14.482

Cost per equivalent unit of conversion = (Beginning Conversion costs + Conversion costs added during the month) ÷ Equivalent unit of conversion

= ($3,200 + $84,100) ÷ 7,865

= $11.100

Cost of unit transferred out =  Cost per equivalent unit of material + Cost per equivalent unit of conversion × Units transferred

($14.482 + $11.10) × 6,600

= $168,841 .2

Therefore the correct answer is $168,841 .2 and in the given question the option is not available.