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 outExplanation / 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
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