Kurtulus Corporation uses the weighted-average method in its process costing sys
ID: 2340036 • Letter: K
Question
Kurtulus 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 ts Beginning work in process inventory: Units in beginning work in process inventory Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion 2,600 s 9,000 $ 4,300 00:25:32 25% Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month 8,500 7,700 $112,100 S 85,200 Ending work in process inventory: 3,400 Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 708 558 The total cost transferred from the first processing department to the next processing department during the month is closest to:Explanation / Answer
Answer
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
7,700
100%
7,700
100%
7,700
Units of ENDING WIP
3,400
70%
2,380
55%
1,870
Equivalent Units of Production
10,080
9,570
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 9,000.00
$ 4,300.00
Cost incurred during the period
$ 112,100.00
$ 85,200.00
Total Costs
Costs
$ 121,100.00
Costs
$ 89,500.00
Equivalent units of production
EUP
10,080
EUP
9,570
Cost per EUP
$ 12.01
$ 9.35
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
7,700
$ 12.01
$ 92,477.00
- Conversion
7,700
$ 9.35
$ 71,995.00
Total Cost transferred Out
$ 164,472.00 = Answer
---Hence, the total cost transferred from first processing department to the next processing department during the month is $ 164,472 OR Cost closest to it as per your options available.
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
7,700
100%
7,700
100%
7,700
Units of ENDING WIP
3,400
70%
2,380
55%
1,870
Equivalent Units of Production
10,080
9,570
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