Carpenter Corporation uses the weighted-average method in its process costing sy
ID: 342000 • 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: Cost Percent Complete Materials costs $ 5,200 60% Conversion costs $ 8,500 55% 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: Materials costs $ 95,000 Conversion costs $ 169,200 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:
Explanation / Answer
Costs Charged to Production Costs of Beginning WIP 13,700.00 Costs incurred this period 264,200.00 Total Costs to account for 277,900.00 Total costs accounted for 277,900.00 Difference due to rounding cost/unit - Unit Reconciliation Units to account for: Beginning WIP 600 Started into Production (15,000 - 3,000) 7,800 Total units to account for 8,400 Total units accounted for Completed during the period 7,100 Ending WIP (8,400 - 7,100) 1,300 Total units accounted for 8,400 Equivalent Units of Production (EUP) - Weighted Average Method Units % Material EUP-Materials % Conversion EUP-Conversion Completed during the period 7,100 100% 7,100 100% 7,100 Ending WIP 1,300 85% 1,105 70% 910 Equivalent Units of Production (EUP) 8,205 8,010 Cost per EUP Materials Conversion Beginning WIP 5,200 8,500 Cost Incurred during the period 95,000 169,200 Total Costs Costs 100,200 Costs 177,700 Equivalent Units of Production (EUP) EUP 8,205 EUP 8,010 Cost per Equivalent Units of Production 12.21 22.18 Cost Assignment and Reconciliation Costs Transferred Out EUP Cost per EUP Total Cost Direct Materials 7,100 12.21 86,705.67 Conversion 7,100 22.18 157,511.86 Total transferred Out 244,217.53 Costs of Ending WIP EUP Cost per EUP Total Cost Direct Materials 1,105 12.21 13,494.33 Conversion 910 22.18 20,188.14 Total Ending WIP 33,682.47 Total costs accounted for 277,900.00 Total cost transferred from the first processing department to the next processing department 244,217.53