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

ID: 2587489 • Letter: K

Question

Kuzuck 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 700 Materials costs $13,000 Conversion costs $7,800 Percent complete with respect to materials 65% Percent complete with respect to conversion 30% Units started into production during the month 18,000 Units transferred to the next department during the month 16,900 Materials costs added during the month $162,305 Conversion costs added during the month $299,295 Ending work in process inventory: Units in ending work in process inventory 1,800 Percent complete with respect to materials 60% Percent complete with respect to conversion 25% 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. To reduce rounding error, carry out all computations to at least three decimal places. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)
Kuzuck 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 700 Materials costs $13,000 Conversion costs $7,800 Percent complete with respect to materials 65% Percent complete with respect to conversion 30% Units started into production during the month 18,000 Units transferred to the next department during the month 16,900 Materials costs added during the month $162,305 Conversion costs added during the month $299,295 Ending work in process inventory: Units in ending work in process inventory 1,800 Percent complete with respect to materials 60% Percent complete with respect to conversion 25% 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. To reduce rounding error, carry out all computations to at least three decimal places. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)
Kuzuck 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 700 Materials costs $13,000 Conversion costs $7,800 Percent complete with respect to materials 65% Percent complete with respect to conversion 30% Units started into production during the month 18,000 Units transferred to the next department during the month 16,900 Materials costs added during the month $162,305 Conversion costs added during the month $299,295 Ending work in process inventory: Units in ending work in process inventory 1,800 Percent complete with respect to materials 60% Percent complete with respect to conversion 25% 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. To reduce rounding error, carry out all computations to at least three decimal places. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)

Explanation / Answer

Material Costs

Conversion Cost

A

Beginning Inventory (in units)

700

700

B

Work already Completed

65%

30%

C

Work to be completed in this month

35%

70%

D

Equivalent Units (A*C)

245

490

E

Units Started into Production

18000

18000

F

Closing Inventory (in units)

1800

1800

G

Work already Completed

60%

25%

H

Work to be completed in next month

40%

75%

I

Equivalent Units (F*H)

720

1350

J

Total Goods Produced in the month (D + E - I)

17525

17140

K

Costs of the month

$            162,305

$                299,295

L

Costs per Unit (K*J)

$                   9.26

$                     17.46

M

Units transferred to Next Department

16900

16900

N

Costs Transferred (L*M)

$      156,516.66

$          295,104.17

Total costs Transferred

$      451,620.83

Material Costs

Conversion Cost

A

Beginning Inventory (in units)

700

700

B

Work already Completed

65%

30%

C

Work to be completed in this month

35%

70%

D

Equivalent Units (A*C)

245

490

E

Units Started into Production

18000

18000

F

Closing Inventory (in units)

1800

1800

G

Work already Completed

60%

25%

H

Work to be completed in next month

40%

75%

I

Equivalent Units (F*H)

720

1350

J

Total Goods Produced in the month (D + E - I)

17525

17140

K

Costs of the month

$            162,305

$                299,295

L

Costs per Unit (K*J)

$                   9.26

$                     17.46

M

Units transferred to Next Department

16900

16900

N

Costs Transferred (L*M)

$      156,516.66

$          295,104.17

Total costs Transferred

$      451,620.83