Question

Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	12,700				85%
Conversion costs	$	10,900				30%

A total of 9,800 units were started and 8,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	175,600
Conversion costs	$	420,900

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Multiple Choice

$77,994

$73,308

$104,725

$89,016

Answer 1

Correct answer----$77,994

Working

Reconciliation of Units
A	Opening WIP	700
B	Introduced	9,800
C=A+B	TOTAL	10,500
D	Transferred	8,800
E=C-D	Closing WIP	1,700

Statement of Equivalent Units
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	8,800			100%	8,800	100%	8,800
Closing WIP	1,700			85%	1,445	70%	1,190
Total	10,500			Total	10,245	Total	9,990

Cost per Equivalent Units
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost		$           12,700	$        10,900	$        23,600
Cost incurred during period		$       1,75,600	$     4,20,900	$    5,96,500
Total Cost to be accounted for		$       1,88,300	$     4,31,800	$    6,20,100
Total Equivalent Units		10,245	9,990
Cost per Equivalent Units		$             18.38	$           43.22

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$           18.38	1,445	$        26,559
Conversion	$           43.22	1,190	$        51,436
TOTAL	$     6,20,100	TOTAL	$        77,994