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 of production in ending work in process	700	380
Cost per equivalent unit	$32.12	$8.15

  

A total of 1,700 units were completed and transferred to the next processing department during the period.

  

Required:

Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory. (Round your final answers to the nearest dollar amount.)

  

	Materials	Conversion	Total
Cost of units transferred out	$	$	$
Cost of ending work in process inventory	$	$	$

$

Answer 1

Units Transferred out (1700 units)
			Equivalent unit	Cost per EU	Total Cost
Material			1,700	32.12	54604
Conversion Cost			1,700	8.15	13855
Total Cost of Units completed and transferred out:					68459
Ending Work in process (700 units)
			Equivalent unit	Cost per EU	Total Cost
Material			700	32.12	22484
Conversison Cost			380	8.15	3097
Total cost of Ending Work in process:					25,581
			Material	Conversion	Total
Cost of Units transferred out			54604	13855	68459
Cost of Ending WIP			22484	3097	25581
Total cost accounted for:					94040