Question

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		1,000
Materials costs	$	7,400
Conversion costs	$	2,700
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		6,900
Units transferred to the next department during the month		6,100
Materials costs added during the month	$	110,500
Conversion costs added during the month	$	83,600
Ending work in process inventory:
Units in ending work in process inventory		1,800
Percent complete with respect to materials		70	%
Percent complete with respect to conversion		55	%

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: (Round your intermediate calculations to 3 decimal places.)

Answer 1

Cost of ending work in process inventory = $32234
Calculations:
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	6100	100%	6100	100%	6100
Ending work in process	1800	70%	1260	55%	990
Total units	7900		7360		7090
Cost per equivalent unit of production	Materials	Conversion
Cost of beginning work in process	7400	2700
Costs incurred this period	110500	83600
Total costs	117900	86300
÷ Equivalent units of production	7360	7090
Cost per equivalent unit of production	16.019	12.172
Cost of ending work in process inventory	EUP	Cost per EUP	Total cost
Direct materials	1260	16.019	20184
Convesrion	990	12.172	12050
Cost of ending work in process inventory			32234