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 2,000 Materials costs $ 8,400 Conversion costs $ 3,700 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 7,900 Units transferred to the next department during the month 7,100 Materials costs added during the month $ 111,500 Conversion costs added during the month $ 84,600 Ending work in process inventory: Units in ending work in process inventory 2,800 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:

Answer 1

Costs Charged to Production
Costs of Beginning WIP	12,100
Costs incurred this period	196,100
Total Costs to account for	208,200
Total costs accounted for	208,200
Difference due to rounding cost/unit	(0)
Unit Reconciliation
Units to account for:
Beginning WIP	2,000
Started into Production	7,900
Total units to account for	9,900
Total units accounted for
Completed during the period	7,100
Ending WIP (9,900 - 7,700)	2,800
Total units accounted for	9,900
Equivalent Units of Production (EUP) - Weighted Average Method
	Units	% Material	EUP-Materials	% Conversion	EUP-Conversion
Completed during the period	7,100	100%	7,100	100%	7,100
Ending WIP	2,800	70%	1,960	55%	1,540
Equivalent Units of Production (EUP)			9,060		8,640
Cost per EUP			Materials		Conversion
Beginning WIP			8,400		3,700
Cost Incurred during the period			111,500		84,600
Total Costs		Costs	119,900	Costs	88,300
Equivalent Units of Production (EUP)		EUP	9,060	EUP	8,640
Cost per Equivalent Units of Production			13.23		10.22
Cost Assignment and Reconciliation
Costs Transferred Out	EUP	Cost per EUP	Total Cost
Direct Materials	7,100	13.23	93,961
Conversion	7,100	10.22	72,561
Total transferred Out			166,522
Costs of Ending WIP	EUP	Cost per EUP	Total Cost
Direct Materials	1,960	13.23	25,939
Conversion	1,540	10.22	15,739
Total Ending WIP			41,678
Total costs accounted for				208,200