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

Question

Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were:

A total of 9,800 units were started and 8,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Cost Percent
Complete Materials costs $ 12,700 85% Conversion costs $ 10,900 30%

Explanation / Answer

Whole units Equivalent units Material Conversion Beginning Inventory 700 700 700 Units Started and completed 8100 8100 8100 Closing Inventory 1700 1445 1190 Equivalent units of production 10500 10245 9990 Calculation of cost per equivalent units Material Conversion Costs incurred 188300 431800 Units of equivalent production 10245 9990 Unit costs 18.380 43.223 Ending Work in process 77994.47 Answer (1445*18.38)+(1190*43.223)

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