using the weighted-average method in its process costing system. Beginning work
ID: 2351302 • Letter: U
Question
using the weighted-average method in its process costing system.Beginning work in progress inventory is 3200 units, percent complete with respect to conversion is 80%. Transferred in from the prior department during january is 55000, Completed and transferred to the next department during january is 54300. Ending work in progress inventory is 3900 units, percent complete with respect to conversion is 90%.
THe cost per equivalent unit for conversion cost for january is $7.90. How much conversion cost was assigned to the ending work in progress inventory
Explanation / Answer
Diston Company Equivalent units completed and transferred out 87,000 [22,000 + 92,000 - 27,000] Equivalent units in ending WIP 4,050 [27,000 x 15%] Equivalent units of production 91,050 Cost in beginning WIP 44,920 Cost incurred in January 679,100 Total costs 724,020 Divided by 91,050 equivalent units of production = 7.9518 cost per equivalent unit The answer is 7.952 Ravalt Corporation 6,400 units x 75% = 4,800 equivalent units in ending WIP 4,800 equivalent units x 8.04 cost per equivalent unit = 38,592 cost assigned to ending WIP
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