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		2,060			990
Cost per equivalent unit	$	15.86		$	6.43

A total of 21,000 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.)

Answer 1

	Material	Conversion	Total
Cost of Ending Inventory = Equivalent units in Ending Inventory*Cost per Equivalent Unit	32,672	6,366	39,037
Cost of Units Completed = Units Completed*Cost per Equivalent unit	333,060	135,030	468,090