Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,700 65% Conversion costs $ 6,800 45% A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 125,500 Conversion costs $ 207,000 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

Answer :

anthougo

Answer:

Annenbaum Corporation

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

= $322,022.

Explanation:

a) Data and Calculations:

Units in Beginning WIP Inventory  400

Units started in the period         6,500

Units transferred out                  5,900

Units in Ending WIP Inventory    1,000

                                        Materials costs    Conversion costs

Beginning WIP Inventory      $ 5,700 (65%)      $ 6,800 (45%)

Costs added during month 125,500                207,000

Total costs of production   $131,200               $213,000

Equivalent units:              Materials            Conversion

Units transferred out        5,900                   5,900 (100%)

Ending WIP Inventory          500 (50%)            350  (35%)

Total equivalent units      6,400                    6,250

Cost per equivalent units:  Materials            Conversion

Total costs of production   $131,200               $213,000

Total equivalent units           6,400                     6,250

Cost per equivalent unit       $20.50                 $34.08

Cost assigned to:

                                        Materials costs         Conversion costs   Total

Units transferred out        $120,950                  $201,072            $322,022

                                       ($20.5*5,900)         ($34.08**5,900)

Ending WIP Inventory         $10,250                    $11,928                $22,178

                                       ($20.5*500)              ($34.08**350)

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