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: Cost Percent Complete Materials costs $ 12,700 85% Conversion costs $ 10,900 30% 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: Cost Materials costs $ 175,600 Conversion costs $ 420,900 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:

Explanation / Answer

Materials costs Conversion costs Units transferred 8800 8800 Ending work in process 1445 1190 Equivalent units 10245 9990 Total costs 188300 431800 Cost per Equivalent unit 18.38 43.22 Cost of ending work in process inventory=(1445*18.38)+(1190*43.22)= $77991 Note: Unit costs have been rounded off to 2 decimal places

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