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 2,600 Materials costs $ 9,000 Conversion costs $ 4,300 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 8,500 Units transferred to the next department during the month 7,700 Materials costs added during the month $ 112,100 Conversion costs added during the month $ 85,200 Ending work in process inventory: Units in ending work in process inventory 3,400 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

• $56,070

• $46,082

• $68,983

• $49,614

Answer 1

	Materials	Conversion
Units completed and transferred out	7700	7700
Work in process, ending:
3400 X 70%	2380
3400 X 55%		1870
Equivalent units of production	10080	9570
	Materials	Conversion
Work in process, beginning	9000	4300
Cost added during period	112100	85200
Total costs	121100	89500
Divide by Equivalent units of production	10080	9570
Cost per Equivalent unit	12.01	9.35
	Materials	Conversion	Total
Work in process, ending units	2380	1870
X Cost per Equivalent unit	12.01	9.35
Cost of ending work in process inventory	28593	17489	46082
$46,082 is correct option