In: Accounting
1. Sanchez Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March.
Units | Percent Complete with respect to conversion | |
Beginning Work In Process Inventory | 7,000 | 60% |
Transferred in from prior department in March | 52,000 | |
Ending Work in Process Inventory | 3,500 | 80% |
The Fitting Department's cost per equivalent unit for conversion
cost for March was $8.66.
How much conversion cost was assigned to the units transferred out
of the Fitting Department during March?
2. In February, one of the processing departments at Carpentier Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $29,000. During the month, $148,000 of costs were added to production and the cost of units transferred out from the department was $133,000. In the department's cost reconciliation report for February, the total cost to be accounted for would be:
1) | Beginning wip | 7,000 | completed & transferred out | 55,500 | |||
units transferred in | 52,000 | Ending WIP | 3,500 | ||||
units to be accounted | 59,000 | units accounted for | 59,000 | ||||
thus conversion cost Assigned to units transferred out is | |||||||
55,500 units *8.66 | |||||||
480630 | answer | ||||||
2) | total cost to be accounted for | ||||||
Beginning work in process | 14,000 | ||||||
Cost added during the year | 148,000 | ||||||
total cost to be accounted for | 162,000 | ||||||