Question

Process Costing Tempe Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are added at the beginning of production. The total cost per equivalent unit in process in March 2009 was $4.60, consisting of $3.00 for materials and $1.60 for conversion. During the month, 8,700 units of product were transferred to finished goods inventory; on March 31, 2,000 units were in process, 10 percent converted. The company uses weighted average costing.

(a) Determine the cost of goods transferred to finished goods inventory.

40,020

(b) Determine the cost of the ending work-in-process inventory.

(c) What was the total cost of the beginning work-in-process inventory plus the current manufacturing costs?

Answer 1

		Total
a)	Cost of Transferred Units	40,020
b	Cost of Ending WIP	6,320
c)	total cost	46,340
	Tempe Manufacturing Company
	Production Cost Report
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	8700	8700	8700
	Units in ending inventory	2000	2000	200
	Total accounted for	10700	10700	8900
	Cost per equivalnet unit		3.00	1.60
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer	40,020	26,100	13,920
	Units in ending inventory	6,320	6,000	320
	Total Cost Accounted for	46,340	32,100	14,240