Question

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		2,200
Materials costs	$	9,500
Conversion costs	$	10,800
Percent complete with respect to materials		85	%
Percent complete with respect to conversion		55	%
Units started into production during the month		8,700
Units transferred to the next department during the month		7,800
Materials costs added during the month	$	104,400
Conversion costs added during the month	$	186,100
Ending work in process inventory:
Units in ending work in process inventory		3,100
Percent complete with respect to materials		60	%
Percent complete with respect to conversion		50	%

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

Answer 1

The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: $256,228

Working

Reconciliation of Units
A	Opening WIP	2,200
B	Introduced	8,700
C=A+B	TOTAL	10,900
D	Transferred	7,800
E=C-D	Closing WIP	3,100

Statement of Equivalent Units
				Material		Conversion Cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	7,800			100%	7,800	100%	7,800
Closing WIP	3,100			60%	1,860	50%	1,550
Total	10,900			Total	9,660	Total	9,350

Cost per Equivalent Units
COST		Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost		$               9,500	$               10,800	$                  20,300
Cost incurred during period		$         1,04,400	$           1,86,100	$               2,90,500
Total Cost to be accounted for		$         1,13,900	$           1,96,900	$               3,10,800
Total Equivalent Units		9,660	9,350
Cost per Equivalent Units		$               11.79	$                 21.06

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 11.79	1,860	$    21,931.06	7,800	$          91,968.94
Conversion Cost	$ 21.06	1,550	$    32,641.18	7,800	$       1,64,258.82
TOTAL		TOTAL	$          54,572	TOTAL	$             2,56,228