Question

Kurtulus 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		1,500
Materials costs	$	7,900
Conversion costs	$	3,200
Percent complete with respect to materials		55	%
Percent complete with respect to conversion		25	%
Units started into production during the month		7,400
Units transferred to the next department during the month		6,600
Materials costs added during the month	$	111,000
Conversion costs added during the month	$	84,100
Ending work in process inventory:
Units in ending work in process inventory		2,300
Percent complete with respect to materials		70	%
Percent complete with respect to conversion		55	%

The total cost transferred from the first processing department to the next processing department during the month is closest to:

Garrison 16e Rechecks 2017-08-28

Multiple Choice

• $185,209

• $168,841

• $210,199

• $194,509

Answer 1

Equivalent unit of material = 6600+(2300*70%) = 8210

Equivalent unit of conversion = 6600+(2300*55%) = 7865

Cost per equivalent unit of material = (7900+111000)/8210 = 14.482

Cost per equivalent unit of conversion = (3200+84100)/7865 = 11.100

Cost of unit transferred out = (14.482+11.10)*6600 = 168841

So answer is b) $168841