Exercise 4-4 Assigning Costs to Units-Weighted-Average Method [LO 4-4] Data conc
ID: 2586362 • Letter: E
Question
Exercise 4-4 Assigning Costs to Units-Weighted-Average Method [LO 4-4]
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below:
A total of 20,500 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.
(Round your final answers to the nearest whole dollar amount.)
Materials Conversion Equivalent units in ending work in process inventory 2,030 980 Cost per equivalent unit $ 15.56 $ 4.63Explanation / Answer
Material Conversion Total Cost of ending work in process inventory 31587 4537 36124 Cost of units transferred to the next department 318980 94915 413895 Cost of ending work in process inventory: *Calculation: Equivalent units of production in ending WIP * cost per equivalent unit Material 2030 * 15.56 31586.8 Conversion 980 * 4.63 4537.4 Cost of units transferred to the next department: *Calculation: Units completed and transferred * cost per equivalent unit Material 20500 * 15.56 318980 Conversion 20500 * 4.63 94915
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