Heller Corporation uses the weighted-average method in its process costing syste

Question

Heller 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:

  Beginning work in process inventory:
  Units in beginning work in process inventory 950
  Materials costs $13,500
  Conversion costs $11,000
  Percent complete with respect to materials 65%
  Percent complete with respect to conversion 30%
  Units started into production during the month 16,700
  Units transferred to the next department during the month 16,100
  Materials costs added during the month $172,127
  Conversion costs added during the month $295,867
  Ending work in process inventory:
  Units in ending work in process inventory 1,550
  Percent complete with respect to materials 60%
  Percent complete with respect to conversion 20%

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)

$24,471

Explanation / Answer

Vaue of Closing wip (Material) = 9.91*1550*0.60 = 9291.76

(Conversion) = 17.38*1550*0.20 = 5386.51

Equivalent complete units in Opening WIP Complete during the month Equivalent complete units in Closing WIP Total Completed units 332.5 16100 930 17362.5 617.5 16100 310 17027.5

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