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Data concerning a recent period\'s activity in the Prep Department, the first pr

ID: 2332734 • Letter: D

Question

Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory Cost per equivalent unit 2,000 13.86 800 $4.43 A total of 20,100 units were completed and transferred to the next processing department during the period Required 1. Compute the cost of ending work in process inventory for materials, conversion, and in total 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total Answer is complete but not entirely correct. Materials $ 30,848 > 5,887 > $ 36,735 3 $ 326,196 X S 139,893 X S 466,089 Conversion Total Cost of ending work in process inventor Cost of units transferred out

Explanation / Answer

Working Note

Cost accounted for

Cost of Units transferred

Equivalent Units

Cost per Equivalent Units

Cost accounted for transferred out units

Material

              20,100

$ 13.86

$ 278,586.00

Conversion Cost

              20,100

$    4.43

$    89,043.00

$ 367,629.00

Cost of ending WIP

Equivalent Units

Cost per Equivalent Units

Cost accounted for WIP units

Material

                2,000

$ 13.86

$    27,720.00

Conversion Cost

                    800

$    4.43

$      3,544.00

$    31,264.00

Total Cost accounted for

$ 398,893.00

Complete Answer

Material

Conversion

Total

Cost of Ending Work in progress Inventory

$     27,720.00

$     3,544.00

$     31,264.00

Cost of Units Transferred out

$ 278,586.00

$   89,043.00

$   367,629.00

Notes

Units transferred out will be same for both material and Conversion cost.

Cost accounted for

Cost of Units transferred

Equivalent Units

Cost per Equivalent Units

Cost accounted for transferred out units

Material

              20,100

$ 13.86

$ 278,586.00

Conversion Cost

              20,100

$    4.43

$    89,043.00

$ 367,629.00

Cost of ending WIP

Equivalent Units

Cost per Equivalent Units

Cost accounted for WIP units

Material

                2,000

$ 13.86

$    27,720.00

Conversion Cost

                    800

$    4.43

$      3,544.00

$    31,264.00

Total Cost accounted for

$ 398,893.00