B Data concerning a recent periods activity in the Prep Depa

Data concerning a recent period\'s activity in the Prep Department, the first processing department in a company that uses process costing, appear below Materials Conversion Equivalent units in ending work in process inventory Cost per equivalent unit 2, 080 s 15.56s 5.0 980 A total of 21,800 units were completed and transferred to the next processing department during the period Required 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total (Round your final answers to the nearest whole dollar amount.) Materials Conversion Total 1. Cost of ending work in process inventory 2 Cost of units transferred out

Solution

A)

Statement of cost

Cost

Cost/unit

Closing WIP

Transferred

Units

Cost Allocated

Units

Cost Allocated

Material

$            15.56

2080

$      32,364.80

21800

$     339,208.00

Conversion cost

$               5.03

980

$        4,929.40

21800

$     109,654.00

Total

TOTAL

$      37,294.20

TOTAL

$     448,862.00

Material

Conversion

Total

Cost of ending Work in Progress Inventory

$    32,364.80

$      4,929.40

$      37,294.20

Cost of Units Transferred out

$ 339,208.00

$ 109,654.00

$    448,862.00

B)

Units

Material completion

Conversion Cost completion

Opening units

2400

55%

10%

Introduced

9800

Total

12200

Transferred

8900

100%

100%

Closing WIP

3300

75%

25%

Equivalent Units

WIP

Total Units

Material

Conversion cost

Opening

2400

45%

1080

90%

2160

Ending

3300

75%

2475

25%

825

Introduced and completed

8900

100%

8900

100%

8900

TOTAL Equivalent Units of Production

14600

12455

11885

Material

Conversion

Equivalent Units of production

12455

11885

A)	Statement of cost
	Cost	Cost/unit	Closing WIP		Transferred
			Units	Cost Allocated	Units	Cost Allocated
	Material	$            15.56	2080	$      32,364.80	21800	$     339,208.00
	Conversion cost	$               5.03	980	$        4,929.40	21800	$     109,654.00
	Total		TOTAL	$      37,294.20	TOTAL	$     448,862.00