Question

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,200 60% Conversion costs $ 8,500 55% A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $ 95,000 Conversion costs $ 169,200 The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs. 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	13,700.00
Costs incurred this period	264,200.00
Total Costs to account for	277,900.00
Total costs accounted for	277,900.00
Difference due to rounding cost/unit	-
Unit Reconciliation
Units to account for:
Beginning WIP	600
Started into Production (15,000 - 3,000)	7,800
Total units to account for	8,400
Total units accounted for
Completed during the period	7,100
Ending WIP (8,400 - 7,100)	1,300
Total units accounted for	8,400
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	1,300	85%	1,105	70%	910
Equivalent Units of Production (EUP)			8,205		8,010
Cost per EUP			Materials		Conversion
Beginning WIP			5,200		8,500
Cost Incurred during the period			95,000		169,200
Total Costs		Costs	100,200	Costs	177,700
Equivalent Units of Production (EUP)		EUP	8,205	EUP	8,010
Cost per Equivalent Units of Production			12.21		22.18
Cost Assignment and Reconciliation
Costs Transferred Out	EUP	Cost per EUP	Total Cost
Direct Materials	7,100	12.21	86,705.67
Conversion	7,100	22.18	157,511.86
Total transferred Out			244,217.53
Costs of Ending WIP	EUP	Cost per EUP	Total Cost
Direct Materials	1,105	12.21	13,494.33
Conversion	910	22.18	20,188.14
Total Ending WIP			33,682.47
Total costs accounted for				277,900.00
Total cost transferred from the first processing department to the next processing department					244,217.53