Carpenter Corporation uses the weighted-average method in its process costing sy
ID: 2339835 • Letter: C
Question
Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were:
A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.
The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)
Cost PercentComplete Materials costs $ 5,200 60% Conversion costs $ 8,500 55%
Explanation / Answer
Unit transferred out = 600+7800-7100 = 1300 Units
equivalent unit of material = 7100+(1300*85%) = 8205
Equivalent unit of conversion = 7100+(1300*70%) = 8010
Cost per equivalent unit of material = (5200+95000)/8205 = 12.212
Cost per equivalent unit of conversion = (8500+169200)/8010 = 22.185
The total cost transferred from the first processing department to the next processing department during the month is closest to: (22.185+12.212)*7100 = $244218.70 or $244219