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

Question

Evans Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were Cost Percent Complete Materials costs $28300 total of 8100 units were started and 6,800 units were transferred to the second processing department during the month. The following costs were incurred in the frst processing department during the month: $247400 The ending invernory wes GOS complete with respect to materials and 70% complete with respect to converson costs. Note Your enswers may differ from those offered below due to rounding errox in all cases, select the anewer that is the closest to the answer you computed To reduce rounding errox carry out all computations to at least three decimal places he botal cost transfeed O $342.904 O $366 300 O $453.843 O $327400 from the frst processing department to the next processing departmment during the month is closest to

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 1,200 Add: Units Started in Process 26,000 Total Units to account for: 27,200 UNITS TO BE ACCOUNTED FOR: Units started and completed 26,200 Ending Work in Process 1,000 Total Units to be accounted for: 27,200 UNITS TO ACCOUNT FOR: Beginning Work in Process units 900 Add: Units Started in Process 8,100 Total Units to account for: 9,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 6,800 Ending Work in Process 2,200 Total Units to be accounted for: 9,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 6,800 100% 6,800 Ending Work in Process 60% 1,320 10% 220 Total Equivalent units 8,120 7,020 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 10,800 28,500 Cost Added during May 80,000 247,400 Total Cost to account for: 90,800 275,900 Total Cost to account for: 366,700 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 90,800 275,900 Equivalent Units 8,120 7,020 Cost per Equivalent unit 11.18227 39.30199 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (6800 units) Equivalent unit Cost per EU Total Cost Material 6,800 11.18 76024 Conversion Cost 6,800 39.3 267240 Total Cost of Units completed and transferred out: 343264 Answer is $ 342904

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