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		2,120			960
Cost per equivalent unit	$	14.46		$	6.33

A total of 20,200 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.

(Round your final answers to the nearest whole dollar amount.)

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

Answer 1

1
		Material	Conversion
A	Equivalent Units in Closing Inventory	2120	960
B	Cost per Equivalent Unit	14.46	6.33
		Material	Conversion	Total
A*B	Cost of Ending WIP Inventory	30655.2	6076.8	36732
2
		Material	Conversion
A	Units Completed & Transferred	20200	20200
B	Cost per Equivalent Unit	14.46	6.33
		Material	Conversion	Total
A*B	Cost of Ending WIP Inventory	292092	127866	419958