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		600
Materials costs	$	7,000
Conversion costs	$	2,300
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		6,500
Units transferred to the next department during the month		5,700
Materials costs added during the month	$	110,100
Conversion costs added during the month	$	83,200
Ending work in process inventory:
Units in ending work in process inventory		1,400
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: (Round "Cost per equivalent unit" to 3 decimal places.)

Garrison 16e Rechecks 2017-07-13, 2017-08-28

Multiple Choice

• $202,600

• $193,300

• $175,246

• $218,290

Answer 1

Correct answer---------------$175,246

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	5,700			100%	5,700	100%	5,700
Ending WIP	1,400			70%	980	55%	770
Total	7,100			Total	6,680	Total	6,470

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 7,000	$ 2,300	$ 9,300
Cost incurred during period (B)		$ 110,100	$ 83,200	$ 193,300
Total Cost to be accounted for (C=A+B)		$ 117,100	$ 85,500	$ 202,600
Total Equivalent Units(D)		6,680	6,470
Cost per Equivalent Units (E=C/D)		$                 17.53	$                   13.21	$                     30.74

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 17.53	980	$          17,179.34	5,700	$          99,920.66
Conversion	$ 13.21	770	$          10,175.43	5,700	$          75,324.57
TOTAL	$ 202,600	TOTAL	$ 27,355	TOTAL	$ 175,245