Use information for Krepps Corporation below to answer the following two questio
ID: 2416595 • Letter: U
Question
Use information for Krepps Corporation below to answer the following two questions. Krepps 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: The cost per equivalent unit for materials in the first processing department for the month is closest to: $ 43.53 $ 23.86 $ 39.53 $ 23.28 $ 22.65 The conversion costs assigned to the ending work-in-process inventory in the first processing department according to the company's cost system is closest to: $ 11,858 $ 25,051 $ 13.060 $ 176,549 $ 322,140Explanation / Answer
Calculation Equivalent units using Weighted average cost method
Material cost =Opening+Current year=$13,400+$188,200=$201,600
The cost equivalent per unit for material=$201,600/8,450=$23.86
Conversion cost=$8,600+$326,600=$335,200
The cost equivalent per unit for conversion cost=$335,200/7,700=$43.53
Conversion cost for WIP=1,500*20%*$43.53=$13,059.74=$13,060
Input output % completion material Equivalent units material % completion conversion Equivalent units Conversion 600 7,400 100 7,400 100 7,400 8,300 1,500-ending 70 1,050 20 300 8,900 8,900 8,450 7,700Related Questions
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