Question

Haffner 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		1,400
Materials costs	$	8,700
Conversion costs	$	10,000
Percent complete with respect to materials		85	%
Percent complete with respect to conversion		55	%
Units started into production during the month		7,900
Units transferred to the next department during the month		7,000
Materials costs added during the month	$	103,600
Conversion costs added during the month	$	185,300
Ending work in process inventory:
Units in ending work in process inventory		2,300
Percent complete with respect to materials		60	%
Percent complete with respect to conversion		50	%

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.)

Answer 1

Answer--------Ending inventory = $ 46,051 or $ 46,050.83 depending on roundoff

Working

Reconciliation of Units
A	Opening WIP	1,400
B	Introduced	7,900
C=A+B	TOTAL	9,300
D	Transferred	7,000
E=C-D	Closing WIP	2,300

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	7,000			100%	7,000	100%	7,000
Closing WIP	2,300			60%	1,380	50%	1,150
Total	9,300			Total	8,380	Total	8,150

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 8,700	$ 10,000	$ 18,700
Cost incurred during period		$ 103,600	$ 185,300	$ 288,900
Total Cost to be accounted for		$ 112,300	$ 195,300	$ 307,600
Total Equivalent Units		8,380	8,150
Cost per Equivalent Units		$               13.401	$                23.963

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 13.401	1,380	$          18,493.38
Conversion cost	$ 23.963	1,150	$          27,557.45
TOTAL		TOTAL	$ 46,050.83