Question

4. Happy Pet Inc. 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		600
Materials costs	$	10,800
Conversion costs	$	9,200
Percent complete with respect to materials		85%
Percent complete with respect to conversion		55%
Units started into production during the month		8,250
Units transferred to the next department during the month		7,100
Materials costs added during the month	$	112,900
Conversion costs added during the month	$	183,080
Ending work in process inventory:
Units in ending work in process inventory		1,750
Percent complete with respect to materials		62%
Percent complete with respect to conversion		48%

The cost of ending work in process inventory in the first processing department according to the company's cost system is? (round per unit dollar amount to the nearest cent before calculating total cost for ending WIP)

Answer 1

					EUP-		EUP
Equivalent units			units	% mat	Materials	% cc	CC
units completed & transferred			7,100	100%	7,100	100%	7,100
ending work in process			1,750	62%	1085	48%	840
Equivalent units			8,850		8,185		7,940
cost per unit				Materials	CC	total
Beginning WIP				10,800	9,200	20,000
cost added				112,900	183,080	295,980
total cost				123,700	192,280	315,980
equivalent units				8,185	7,940
cost per unit				15.11301	24.21662
cost of ending WIP
materials	1085	*	15.11301	=	16398
CC	840	*	24.21662	=	20342
					36740	answer