Gunes Corporation uses the weighted-average method in its process costing system

Question

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost $10,600 $12,800 Percent Complete 65% 30% Materials costs Conversion costs A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs Conversion costs $142,100 $359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to:

Explanation / Answer

Equivalent unit :

Cost per equivalent unit :

Total cost transferred from first processing to next processing department = (18.287+46.162)*7400 = $476922.60 or $476923

Whole unit % EUP-material % EUP-conversion Unit transferred 7400 100% 7400 100% 7400 Ending work in process 1900 50% 950 35% 665 Total 9300 8350 8065

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