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 700
Materials costs $7,100
Conversion costs $2,400
Percent complete with respect to materials 55%
Percent complete with respect to conversion 25%
Units started into production during the month 6,600
Units transferred to the next department during the month 5,800
Materials costs added during the month $110,200
Conversion costs added during the month $83,300

Ending work in process inventory:
Units in ending work in process inventory 1,500
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:--

a. $192,401
b. $174,348
c. $201,701
d. $217,391

b. $174,348

Explanation:

Calculation for what The total cost transferred from the first processing department to the next processing department during the month is closest to

First step is to calculate Equivalent units of production

Units transferred to the next department 5800 5800

Ending work in process:

Materials: 1500 units × 70% 1050

Conversion: 1500 units × 55% 825

Equivalent units of production 6850 6625

Second step is to calculate Cost per equivalent unit

Materials Conversion

Cost of beginning work in process inventory $7100 $2400

Costs added during the period $110,200 83,300

Total cost (a)$117,300 $85,700

Equivalent units of production (b)6850 6625

Cost per equivalent unit (a) ÷ (b)$17.12 $12.94

Last step is to calculate Cost of units completed and transferred out

Material Conversion Total

Units completed and transferred out:

Units transferred to the next department (a) 5800 5800

Cost per equivalent unit (b)$ 17.12 $12.94

Cost of units completed and transferred out (a) × (b)$99,296 $75,052 $174,348

Total=$99,296+ $75,052

= $174,348

Therefore The total cost transferred from the first processing department to the next processing department during the month is closest to $174,348

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