Chae Corporation uses the weighted-average method in its process costing system.

Question

Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 610 units The costs and percentage completion of these units in beginning inventory were: A total of 9.200 units were started and 8.050 units were transferred to the second processing department dunng the month The following costs were incurred in the first processing department dunng the month The ending inventory was 85% complete with respect to matenals and 70% complete with respect to conversion costs

Explanation / Answer

Ans: 9282

Statement showing calculation of Equivalent units for conversion cost

Particulars Physical units Percentage of completion Equivalent units

For coversion

Opening units 610 25%

Started 9200

9810

Complete & Transfer 8050 100% 8050

Working In Progress 1760 70% 1232

Total equivalent units(8050+1232)=9282 9282

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