Haffner Corporation uses the weighted-average method in itsprocess costing system. Data concerning the first...

Free

90.2K

Verified Solution

Question

Accounting

Haffner Corporation uses the weighted-average method in itsprocess costing system. Data concerning the first processingdepartment for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory 1,400
Materials costs $ 8,700
Conversion costs $ 10,000
Percent complete with respect to materials 85 %
Percent complete with respect to conversion 55 %
Units started into production during the month 7,900
Units transferred to the next department during the month 7,000
Materials costs added during the month $ 103,600
Conversion costs added during the month $ 185,300
Ending work in process inventory:
Units in ending work in process inventory 2,300
Percent complete with respect to materials 60 %
Percent complete with respect to conversion 50 %
The cost of ending work in process inventory in the firstprocessing department according to the company’s cost system isclosest to: (Round "Cost per equivalent unit" to 3 decimalplaces.)

Answer & Explanation Solved by verified expert

3.5 Ratings (369 Votes)

Answer--------Ending inventory = $ 46,051 or $ 46,050.83 depending on roundoff

Working

Reconciliation of Units
A	Opening WIP	1,400
B	Introduced	7,900
C=A+B	TOTAL	9,300
D	Transferred	7,000
E=C-D	Closing WIP	2,300

Statement of Equivalent Units(Weighted average)
		Material		Conversion cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	7,000	100%	7,000	100%	7,000
Closing WIP	2,300	60%	1,380	50%	1,150
Total	9,300	Total	8,380	Total	8,150

Cost per Equivalent Units (Weighted average)
COST	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost	$ 8,700	$ 10,000	$ 18,700
Cost incurred during period	$ 103,600	$ 185,300	$ 288,900
Total Cost to be accounted for	$ 112,300	$ 195,300	$ 307,600
Total Equivalent Units	8,380	8,150
Cost per Equivalent Units	$ 13.401	$ 23.963

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated

Material	$ 13.401	1,380	$ 18,493.38
Conversion cost	$ 23.963	1,150	$ 27,557.45

TOTAL		TOTAL	$ 46,050.83

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingHaffner Corporation uses the weighted-average method in itsprocess costing system. Data concerning the first processing...Haffner Corporation uses the weighted-average method in itsprocess costing system. Data concerning the first processingdepartment for the most recent month are listed below:Beginning work in process inventory:Units in beginning work in process inventory1,400Materials costs$8,700Conversion costs$10,000Percent complete with respect to materials85%Percent complete with respect to conversion55%Units started into production during the month7,900Units transferred to the next department during the month7,000Materials costs added during the month$103,600Conversion costs added during the month$185,300Ending work in process inventory:Units in ending work in process inventory2,300Percent complete with respect to materials60%Percent complete with respect to conversion50%The cost of ending work in process inventory in the firstprocessing department according to the company’s cost system isclosest to: (Round "Cost per equivalent unit" to 3 decimalplaces.)


Beginning work in process inventory:
Units in beginning work in process inventory		1,400
Materials costs	$	8,700
Conversion costs	$	10,000
Percent complete with respect to materials		85	%
Percent complete with respect to conversion		55	%
Units started into production during the month		7,900
Units transferred to the next department during the month		7,000
Materials costs added during the month	$	103,600
Conversion costs added during the month	$	185,300
Ending work in process inventory:
Units in ending work in process inventory		2,300
Percent complete with respect to materials		60	%
Percent complete with respect to conversion		50	%