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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