Question

October 1, 2017, Alpha Company started a new production operation using the weighted average method of process costing. During October, 9,000 units were started and 7,000 were transferred to finished goods. The October 31, work in process inventory was 100% complete as to material costs and 60% complete as to conversion costs. Material costs for the month of October were $27,000 and conversion costs were $36,900. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. the total costs transferred to finished goods inventory for October 2017

2. the cost that should be assigned to Alpha' work in process inventory at the end of October 2017

Answer 1

1)	Equivalent Unit Statement
	Item	Material	Conversion
	OP. WIP	0	0
	Completed during the month 7000 units	7000	7000
	Cl. WIP of 2000 units @ 60% completion	2000	1200
	Total	9000	8200
	Unit Cost Statement
	Item	Total Costs	Equivalent Units	Per Unit Cost
	Material Costs	27000	9000	3
	Coversion Costs	36900	8200	4.5
	Total	63900	17200	7.5
	Cost Allocation Statement
	Op. WIP	0
	Add: Completed	0
	Started, completed & transferred (7000*7.5)	52500
	Total Finished Goods Inventory	52500
	Total Finished Goods Inventory for October 2017 is $ 52,500
2)	Cost assigned to WIP
	Material Cost (2000*3)	6000
	Conversion Cost (2000*4.5*60%)	5400
	Total Cl. WIP	11400
	Total Cost assigned to Closing WIP for October 2017 is $ 11,400