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		2,200
Materials costs	$	8,600
Conversion costs	$	3,900
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		8,100
Units transferred to the next department during the month		7,300
Materials costs added during the month	$	111,700
Conversion costs added during the month	$	84,800
Ending work in process inventory:
Units in ending work in process inventory		3,000
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:

Answer 1

• Cost of ending WIP Inventory = $ 43229

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	2,100	$                    12.798	$          26,875.80
- Conversion	1,650	$                      9.911	$          16,353.15
Total cost of ending WIP				$              43,228.95

• Related working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	7,300	100%	7,300	100%	7,300
Units of ENDING WIP	3,000	70%	2,100	55%	1,650
Equivalent Units of Production			9,400		8,950
COST per EUP			Material		Conversion
Cost of Beginning WIP			$             8,600.00		$                                    3,900.00
Cost incurred during the period			$        111,700.00		$                                  84,800.00
Total Costs		Costs	$        120,300.00	Costs	$                                  88,700.00
Equivalent units of production		EUP	9,400	EUP	8,950
Cost per EUP			$            12.79787		$                                      9.91061