Question

K 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 1,700 Materials costs $ 8,100 Conversion costs $ 3,400 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 7,600 Units completed and transferred to the next department during the month 6,800 Materials costs added during the month $ 111,200 Conversion costs added during the month $ 84,300 Ending work in process inventory: Units in ending work in process inventory 2,500 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 % The total cost of units completed and transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

Multiple Choice $192,711 $208,401 $167,831 $183,411

Answer 1

Correct answer------------$167,831

Working

Reconciliation of Units
A	Beginning WIP	1,700
B	Introduced	7,600
C=A+B	TOTAL	9,300
D	Transferred out	6,800
E=C-D	Ending WIP	2,500

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	6,800			100%	6,800	100%	6,800
Ending WIP	2,500			70%	1,750	55%	1,375
Total	9,300			Total	8,550	Total	8,175

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 8,100	$ 3,400	$ 11,500
Cost incurred during period (B)		$ 111,200	$ 84,300	$ 195,500
Total Cost to be accounted for (C=A+B)		$ 119,300	$ 87,700	$ 207,000
Total Equivalent Units(D)		8,550	8,175
Cost per Equivalent Units (E=C/D)		$                 13.95	$                   10.73	$                     24.68

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 13.95	1,750	$          24,418.13	6,800	$          94,881.87
Conversion	$ 10.73	1,375	$          14,750.76	6,800	$          72,949.24
TOTAL	$ 207,000	TOTAL	$ 39,169	TOTAL	$ 167,831