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 1,500 $7,900 $ 3,200 Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 55% 25% 7,400 6,600 $111,000 $ 84,100 2,300 70% 55% The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate colculotions to 3 decimal places.)
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 1,500 $7,900 $ 3,200 Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 55% 25% 7,400 6,600 $111,000 $ 84,100 2,300 70% 55% The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate colculotions to 3 decimal places.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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### Kurtulus Corporation: Process Costing Using the Weighted-Average Method
**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:** 1,500
- **Materials costs:** $7,900
- **Conversion costs:** $3,200
- **Percent complete with respect to materials:** 55%
- **Percent complete with respect to conversion:** 25%
#### Production Activity During the Month:
- **Units started into production during the month:** 7,400
- **Units transferred to the next department during the month:** 6,600
- **Materials costs added during the month:** $111,000
- **Conversion costs added during the month:** $84,100
#### Ending Work in Process Inventory:
- **Units in ending work in process inventory:** 2,300
- **Percent complete with respect to materials:** 70%
- **Percent complete with respect to conversion:** 55%
---
**Note:** Round your intermediate calculations to 3 decimal places.
The **total cost transferred from the first processing department to the next processing department** during the month is closest to:
<label style='color: red;'>***[The space for the calculated final value]***</label>
---
This dataset illustrates the use of the weighted-average method to calculate the cost of inventory at various stages in the production process. This method averages the costs over all units produced, including those still in process. This results in an equitable distribution of costs across varying inventory levels, ensuring accuracy in financial reporting and efficiency in production cost management.
### Detailed Explanation:
1. **Weighted-Average Method**:
- This method blends together the costs and quantities of both beginning inventory and current period production.
- It is essential for departments that have continuous production processes with goods moving through different stages.
2. **Calculations**:
- Determine the equivalent units for materials and conversion costs.
- Calculate cost per equivalent unit.
- Apply the cost per equivalent unit to units completed and transferred out and also to ending work in process inventory.
This information trailblazes crucial financial data analysis, necessary for strategic decision-making and cost control.
---](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cb2f02f-d42c-4648-b822-f9339afdd501%2Fed5d648f-da2f-458b-88e9-358a526ce8ba%2Flw32rbd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:---
### Kurtulus Corporation: Process Costing Using the Weighted-Average Method
**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:** 1,500
- **Materials costs:** $7,900
- **Conversion costs:** $3,200
- **Percent complete with respect to materials:** 55%
- **Percent complete with respect to conversion:** 25%
#### Production Activity During the Month:
- **Units started into production during the month:** 7,400
- **Units transferred to the next department during the month:** 6,600
- **Materials costs added during the month:** $111,000
- **Conversion costs added during the month:** $84,100
#### Ending Work in Process Inventory:
- **Units in ending work in process inventory:** 2,300
- **Percent complete with respect to materials:** 70%
- **Percent complete with respect to conversion:** 55%
---
**Note:** Round your intermediate calculations to 3 decimal places.
The **total cost transferred from the first processing department to the next processing department** during the month is closest to:
<label style='color: red;'>***[The space for the calculated final value]***</label>
---
This dataset illustrates the use of the weighted-average method to calculate the cost of inventory at various stages in the production process. This method averages the costs over all units produced, including those still in process. This results in an equitable distribution of costs across varying inventory levels, ensuring accuracy in financial reporting and efficiency in production cost management.
### Detailed Explanation:
1. **Weighted-Average Method**:
- This method blends together the costs and quantities of both beginning inventory and current period production.
- It is essential for departments that have continuous production processes with goods moving through different stages.
2. **Calculations**:
- Determine the equivalent units for materials and conversion costs.
- Calculate cost per equivalent unit.
- Apply the cost per equivalent unit to units completed and transferred out and also to ending work in process inventory.
This information trailblazes crucial financial data analysis, necessary for strategic decision-making and cost control.
---
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