Question

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,200 970 Cost per equivalent unit $ 15.26 $ 5.03 A total of 21,300 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.

2.  

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials		Conversion
Work in process, October 1	50,000	85	%	65	%
Work in process, October 31	37,000	73	%	50	%

The department started 400,000 units into production during the month and transferred 413,000 completed units to the next department.

Required:

Compute the equivalent units of production for October.

Answer 1

Solution-1

Cost of Ending WIP
Material ( 22900*15.26)	$349,454.00
Conversion (970*5.03)	$4,879.10
Total Cost of Ending WIP	$354,333.10

Cost of Unit Completed & Transferred (21300*(15.26+5.03)= $432177

Solution-2
Computation of Equivalne tUnit of production
	Material	Conversion
Unit completed & Transferred	413,000	413,000
Unit in Ending WIP	27,010	18,500
Equivent Unit	440,010	431,500