Question: Able 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.
| Beginning work in process inventory |
|
|
| Units in beginning work in process inventory |
|
300 |
| Percent Complete with Respect to Materials |
|
60% |
| Percent Complete with Respect to Conversion |
|
30% |
| Costs in the beginning of inventory |
|
|
| Materials Cost |
|
|
$342 |
| Conversion Cost |
|
|
$2,394 |
| Units started into production during the month |
21000 |
| Units transferred to the next department during the month |
20700 |
| Materials Cost added during the month |
|
$44,136 |
| Conversion Cost added during the month |
|
$546,750 |
| Ending Work in process inventory |
|
|
| Units in ending work in process inventory |
|
600 |
| Percent Complete with Respect to Materials |
|
80% |
| Respect complete with respect to conversion |
|
30% |
Required: a. Determine the equivalent units of production.
b. Determine the costs per equivalent unit.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of the units transferred to the next department.