Ask Question
16 July, 16:10

Esty Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,800 50% Conversion costs $ 6,500 30% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $ 85,300 Conversion costs $ 168,000 The ending inventory was 70% complete with respect to materials and 10% 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.)

+5
Answers (1)
  1. 16 July, 17:05
    0
    The total cost transferred from the first processing department to the next processing department during the month is closest to $ 245355

    Explanation:

    Calculation of Closing Work In Progress

    800+7700-6600 = 1900

    Calculation of total cost of raw materials and labor in first process

    Materials = 5800+85300 = 91000

    Conversion cost = 6500+168000 = 174500

    Calculation of total equivalent units for Materials and Conversion Cost

    Materials = 1900*70% + 6600*100% = 7930

    Conversion Cost = 1900*10%+6600*100% = 6790

    Calculation of Total Cost per Equivalent unit

    Materials = 91000/7930 = 11.475

    Conversion Cost = 174500/6790 = 25.700

    Total Cost per Equivalent unit = 37.175

    Total cost transferred from the first processing department = 37.175 * 6600
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Esty Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers