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Ok Corporation uses the weighted-average method in its process costing. The foll

ID: 2490414 • Letter: O

Question

Ok Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. Materials Conversion Cost per equivalent unit $ 32.10 $ 27.80 Equivalent units in ending work in process 1,590 590 During the month, 7,900 units were completed and transferred from the Assembly Department to the next department. Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during June using the weighted-average method. (Omit the "$" sign in your response.) Total amount Cost of ending work in process inventory $ Cost of units completed and transferred out $

Explanation / Answer

Answer:

Calculation of cost of ending work in process inventory:

Calculation of cost of units transferred out of the department :

Therefore, Total cost = Total cost for materials + Total cost for conversion

Total amount Cost of ending work in process inventory = 51039 + 16402 = 67441

Total amount Cost of units completed and transferred out =253590+219620 = 473210

Material Conversion Total Equivalent units in ending WIP (a) 1590 590 Cost per equivalent unit (b) 32.1 27.8 Cost of ending WIP inventory (a) * (b) 51039 16402 67441
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