B) Data concerning a recent period\'s activity in the Prep Department, the first
ID: 2399813 • Letter: B
Question
B)Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses process costing, appear below Materials Conversion Equivalent units in ending work in process inventory Cost per equivalent unit 2, 080 s 15.56s 5.0 980 A total of 21,800 units were completed and transferred to the next processing department during the period Required 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total (Round your final answers to the nearest whole dollar amount.) Materials Conversion Total 1. Cost of ending work in process inventory 2 Cost of units transferred out
Explanation / Answer
A)
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 15.56
2080
$ 32,364.80
21800
$ 339,208.00
Conversion cost
$ 5.03
980
$ 4,929.40
21800
$ 109,654.00
Total
TOTAL
$ 37,294.20
TOTAL
$ 448,862.00
Material
Conversion
Total
Cost of ending Work in Progress Inventory
$ 32,364.80
$ 4,929.40
$ 37,294.20
Cost of Units Transferred out
$ 339,208.00
$ 109,654.00
$ 448,862.00
B)
Units
Material completion
Conversion Cost completion
Opening units
2400
55%
10%
Introduced
9800
Total
12200
Transferred
8900
100%
100%
Closing WIP
3300
75%
25%
Equivalent Units
WIP
Total Units
Material
Conversion cost
Opening
2400
45%
1080
90%
2160
Ending
3300
75%
2475
25%
825
Introduced and completed
8900
100%
8900
100%
8900
TOTAL Equivalent Units of Production
14600
12455
11885
Material
Conversion
Equivalent Units of production
12455
11885
A)
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 15.56
2080
$ 32,364.80
21800
$ 339,208.00
Conversion cost
$ 5.03
980
$ 4,929.40
21800
$ 109,654.00
Total
TOTAL
$ 37,294.20
TOTAL
$ 448,862.00
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