Esty Corporation uses the weighted-average method in its process costing system.

Question

Esty Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,800 50% Conversion costs $ 6,500 30% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $ 85,300 Conversion costs $ 168,000 The ending inventory was 70% complete with respect to materials and 10% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Multiple Choice

$253,300

$245,441

$316,098

$265,600

Explanation / Answer

Equivalent units of production (EUP)- weighted average method Units %Materials EUP-Materials %Conversion EUP-Conversion Units completed and transferred out 6600 100% 6600 100% 6600 Ending work in process 1900 70% 1330 10% 190 Total units 8500 7930 6790 Cost per equivalent unit of production Materials Conversion Cost of beginning work in process 5800 6500 Costs incurred this period 85300 168000 Total costs 91100 174500 ÷ Equivalent units of production 7930 6790 Cost per equivalent unit of production 11.488 25.700 Total cost accounted for: Cost of units transferred out EUP Cost per EUP Total cost Direct materials 6600 11.488 75821 Conversion 6600 25.7 169620 Total cost transferred out 245441 Option 2 $245,441 is correct

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.