Problem
Auger Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning
Units in process 700
Percent complete with respect to materials 80%
Percent complete with respect to conversion 40%
Costs in the beginning inventory:
Materials cost $1,904
Conversion cost $8,624
Units started into production during the month 29,000
Units completed and transferred out 28,800
Costs added to production during the month:
Materials cost $104,044
Conversion cost $875,266
Work in process, ending:
Units in process 900
Percent complete with respect to materials 70%
Percent complete with respect to conversion 20%
Required:
i. Determine the equivalent units of production.
ii. Determine the costs per equivalent unit.
iii. Determine the cost of ending work in process inventory.
iv. Determine the cost of the units transferred to the next department.