Question

In: Accounting

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2...

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040.

Direct materials are added at the beginning of the process.

Additionally:
On May 1:Beginning inventories = 250 units, 40% complete
Direct materials costs = $1,250
Conversion costs = $1,356
Transferred-in costs = $2,560

During May:Direct materials costs incurred = $6,000
Conversion costs incurred = $17,013

On May 31: Ending Inventories = 350 units, 20% complete

Using the weighted average method, what is the cost of the ending work in process inventory? Please show all work

Solutions

Expert Solution

  • Working

Statement of Equivalent Units

Cost Transferred

Material

Conversion Cost

Units

Complete %

Equivalent units

Complete %

Equivalent units

Complete %

Equivalent units

Transferred

                        1,100

100%

                      1,100.0

100%

                    1,100.0

100%

          1,100.0

Closing WIP

                            350

100%

                          350.0

100%

                        350.0

20%

                70.0

Total

                        1,450

Total

                      1,450.0

Total

                    1,450.0

Total

          1,170.0

Cost per Equivalent Units

COST

Cost Transferred

Material

Conversion Cost

TOTAL

Beginning WIP Inventory Cost

$               2,560.00

$             1,250.00

$                1,356.00

$               5,166.00

Cost incurred during period

$             38,040.00

$             6,000.00

$              17,013.00

$            61,053.00

Total Cost to be accounted for

$             40,600.00

$             7,250.00

$              18,369.00

$            66,219.00

Total Equivalent Units

                        1,450

                      1,450

                          1,170

Cost per Equivalent Units

$                28.00

$                5.00

$                  15.70

$                48.70

--Answer and working

Statement of cost

Cost

Equivalent Cost/unit

Ending WIP

Transferred

Units

Cost Allocated

Units

Cost Allocated

Cost Transferred

$                     28.00

                          350

$                9,800.00

                        1,100

$            30,800.00

Material

$                      5.00

                          350

$                1,750.00

                        1,100

$              5,500.00

Conversion Cost

$                     15.70

                            70

$                1,099.00

                        1,100

$            17,270.00

TOTAL

$             66,219.00

TOTAL

$              12,649.00 = ANSWER

TOTAL

$            53,570.00

--Answer

The cost of the ending work in process inventory = $ 12,649

ekkarill92 answered 10 months ago
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