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 6 months ago
Next > < Previous

Related Solutions

1. Bildy Corp. uses a process costing system. During January, 10,200 units were started, and 11,300...
1. Bildy Corp. uses a process costing system. During January, 10,200 units were started, and 11,300 units were completed. On January 31, the inventory consisted of 450 units that were 70% completed. How many units were in beginning inventory on January 1? 2. Bosco Corp. uses a process costing system. Beginning inventory for January consisted of 1,070 units that were 63% completed. During January, 10,500 units were completed. On January 31, the inventory consisted of 560 units that were 80%...
Data: Units: Beginning work in process 5,000 units Transferred-in from the Moulding Department during the period...
Data: Units: Beginning work in process 5,000 units Transferred-in from the Moulding Department during the period 26,000 units Completed during the period 14,000 units Ending work in process (20% complete as to conversion work) 17,000 units Costs: Beginning work in process (transferred-in cost, $160; conversion cost, $230) $390 Transferred-in from the Moulding Department during the period 4,800 Conversion costs added during the period 1,858 1. Fill in the time line for the Drying​ Department's process. 2. Use the time line...
During December, the production department of a process operations system completed and transferred to finished goods...
During December, the production department of a process operations system completed and transferred to finished goods a total of 79,000 units of product. At the end of December, 14,000 additional units were in process in the production department and were 65% complete with respect to materials. The beginning inventory included materials cost of $58,800 and the production department incurred direct materials cost of $186,900 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average...
During March, the production department of a process operations system completed and transferred to finished goods...
During March, the production department of a process operations system completed and transferred to finished goods 19,000 units that were in process at the beginning of March and 170,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 61% complete with respect to conversion. At the end of March, 36,000 additional units were in process in the production department and were 100% complete with respect to materials and 22%...
6/ During March, the production department of a process operations system completed and transferred to finished...
6/ During March, the production department of a process operations system completed and transferred to finished goods 17,000 units that were in process at the beginning of March and 130,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 57% complete with respect to conversion. At the end of March, 32,000 additional units were in process in the production department and were 100% complete with respect to materials and...
Assume the company uses a weighted average process costing system. During the current period 5,000 units...
Assume the company uses a weighted average process costing system. During the current period 5,000 units were transferred in (cost $140,000) to Department B. In Department B materials were added costing $25,000 and conversion costs of $60,000 were incurred. A total of 4,800 good units were transferred to finished goods. Direct materials are added at the beginning of the process. Beginning WIP: 1,000 UNITS, 40% complete    Direct materials costs = 4,070 Conversion costs = 6,008    Transferred-in-cost = 10,...
If 181100 units are transferred out of a department, there was no beginning work in process,...
If 181100 units are transferred out of a department, there was no beginning work in process, and there are 29300 units still in process at the end of a period, the number of units that were started into production during the period is 151800. 29300. 181100. 210400.
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:...
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,740. 3 Requisitioned materials totaling $24,460 for use in production. Of the total, $9,190 was for Job 58, $8,910 for Job 59, and the remainder for Job 60. 31 Incurred direct labor for the month of $34,010, with an average wage of $19 per hour. Job 58 used 780 hours; Job 59, 610 hours; and Job 60,...
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:...
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,670. 3 Requisitioned materials totaling $24,500 for use in production. Of the total, $9,200 was for Job 58, $8,900 for Job 59, and the remainder for Job 60. 31 Incurred direct labor for the month of $32,400, with an average wage of $18 per hour. Job 58 used 800 hours; Job 59, 600 hours; and Job 60,...
Kool Inc. uses a weighted-average process costing system and has one production department. All materials are...
Kool Inc. uses a weighted-average process costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion cost is incurred uniformly throughout production. The company had respective work in process inventories on 1 May and 31 May of 62,000 units and 70,000 units, the latter of which was 40 per cent complete. The production supervisor noted that Kool completed 100,000 units during the month. Costs in the 1 May work in process...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT