ACG 2021 Corporation uses the weighted-average method in its process costing sys

Question

ACG 2021 Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were:

Material Costs 3,000.00 : Percent Complete 75%

Conversion costs 2,700.00 : Percent Complete 40%

A total of 7,000 units were started and 6,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month

Material Costs 132,000.00

Conversion costs 219,100.00

The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. What would the cost of ending work in process inventory in the first processing department according to the company's cost system be?

Explanation / Answer

Statement of equivalent production (Weighted Average Method)

Statement of cost (Weighted Average)

Calculation of actual cost of Closing WIP

Material Conversion Units % Amount % Amount Transfered 6900 100 6900 100 6900 Closing WIP 300 90 270 45 135 Equivalent units 7170 7035

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