Hache Corporation uses the weighted-average method in its process costing system
ID: 2425565 • Letter: H
Question
Hache 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:
The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Do not round Cost per equivalent unit.)
Beginning work in process inventory: Units in beginning work in process inventory 800 Materials Costs $ 8,200 Conversion Costs $ 8,000 Percent complete with respect to materials 50% Percent complete with respect to conversion 35% Units started into production during the month 5,600 Units transferred to the next department during the month 4,800 Materials costs added during the month $ 90,500 Conversion costs added during the month $ 125,800 Ending work in process inventory: Units in ending work in process inventory 1,600 Percent complete with respect to materials 50% Percent complete with respect to conversion 30%Explanation / Answer
Equivalent Units Flow Of Units Physical Units Direct Material Conversion Cost Units to be accounted for Beginning work in process inventory 800 Units started this period 5600 Total u nits to be accounted for Ans A 6400 Units accounnted for: Completed and transferred out (b) 4800 4800 4800 Ending work in progress inventory© Ans 1 1600 800 480 Total units to be accounted for (f) 6400 5600 5280 Flow of Cost Cost in the begnning work in progress inventory 16200 8200 8000 Cost added in current period 216300 90500 125800 Total Cost to be accounted for (e) 232500 98700 133800 Cost per equivalent unit (a) (e/f) 42.97 17.63 25.34 Cost accounted for Cost assigned to units transferred out (a*b) 206236.4 84600.00 121636.36 Cost in ending work in progress inventory (a*c) Ans 1 26263.6 14100.00 12163.64 Total Cost accounted for 232500.00 98700.00 133800.00
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