Kurtulus Corporation uses the weighted-average method in its process costing sys
ID: 2433061 • Letter: K
Question
Kurtulus 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 total cost transferred from the first processing department to the next processing department during the month is closest to:
Multiple Choice
$186,418
$177,118
$165,105
$202,108
Beginning work in process inventory: Units in beginning work in process inventory 2,400 Materials costs $ 8,800 Conversion costs $ 4,100 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 8,300 Units transferred to the next department during the month 7,500 Materials costs added during the month $ 111,900 Conversion costs added during the month $ 85,000 Ending work in process inventory: Units in ending work in process inventory 3,200 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 %Explanation / Answer
$165,105
Working:
a. Caculation of equivalent units of production: Materials Conversion Physical Units % Materials Equivalent Units % Materials Equivalent Units Units completed 7500 100% 7500 100% 7500 Ending Units 3200 70% 2240 55% 1760 Total 10700 9740 9260 b. Calculation of Cost per Equivalent unit: Materials Conversion Beginning Work in process costs $ 8,800 $ 4,100 Costs incurred during the period $ 1,11,900 $ 85,000 Total costs $ 1,20,700 $ 89,100 /Equivalent units of production 9740 9260 Cost per Equivalent unit $ 12.392 $ 9.622 c. Calculation of cost of units transferred out: Equivalent Units Cost per Total Cost Cost of units transferred out Equivalent Unit Materials 7500 $ 12.392 $ 92,940 Conversion 7500 $ 9.622 $ 72,165 Total Cost of units transferred out $ 1,65,105Related Questions
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