question archive Imran Corporation uses the weighted-average method in its process costing system
Imran Corporation uses the weighted-average method in its process costing system
Subject:AccountingPrice:2.84 Bought3
Imran Corporation uses the weighted-average method in its process costing system. The ‘B’ Department is the second department in its production process. The data below summarize the department’s operations in January.
Units Percent Complete with Respect to Conversion Beginning work in process inventory...................................................... 6,900 60%
Transferred in from the prior department during January..................... 93,900
Completed and transferred to the next department during January...... 86,200
Ending work in process inventory........................................................... 14,600 40%
The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was Rs. 20,174 and a total of Rs. 588,210 in conversion costs were incurred in the department during January. The cost per equivalent unit (single unit cost) for conversion costs for January in the Molding Department is closest to:
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Cost per Equivalent unitConversionWork in progress Inventory20,174Cost added during the perid 5,88,210Total Cost 6,08,384Equivalent Units (refer working note)92,040Cost per Equivalent unit6.61Working noteEquivalent Units (weighted average method)ConversionUnits completed & transferred out 86,200Ending Work in progress Inventory (14600 x 40%) 5,840Equivalent Units 92,040
