Question

# Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing...

Kurtulus 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:

 Beginning work in process inventory: Units in beginning work in process inventory 2,100 Materials costs \$ 8,500 Conversion costs \$ 3,800 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 8,000 Units transferred to the next department during the month 7,200 Materials costs added during the month \$ 111,600 Conversion costs added during the month \$ 84,700 Ending work in process inventory: Units in ending work in process inventory 2,900 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 %

The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Garrison 16e Rechecks 2017-08-28

Garrison 16e Rechecks 2019-08-02

Multiple Choice

• \$189,115

• \$166,140

• \$204,805

• \$179,815

Option b \$ 1,66,140 is correct.

Working note

1)Calculation of Equivalent units.

Direct
Materials
Conversion
Costs
Transferred out (A) 7200 7200
Units at ending (B) 2900 2900
Percentage of completion (C) 70% 55%
Equivalent units as end (D=B×C) 2030 1595

Total Equivalent Units (A+ D)

9230

8795

2) Calculation of cost per equivalent unit.

Direct
Materials
Conversion
Costs
Total
At begining \$8500 \$3800 \$12,300
Added during the month \$1,11,600 \$84,700 \$1,96,300
Costs to be accounted for \$1,20,100 \$ 88,500 \$208,600
Total Equivalent units 9230 8795
Cost per Equivalent unit 13.012 10.063 23.075

Total Cost of Unit transferred from first processing department to next processing department is 7200 x 23.075 = \$ 1,66,140

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.