The Baker Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department
are as follows:
Beginning Work in Process Costs:
Material $1,000
Conversion 1,500
Current Costs:
Material $3,200
Conversion 5,045
The Decorating Department had 600 wreaths in process at the beginning of the
month that were 80 percent complete as to material and 90 percent complete as
to conversion. The department had 300 units in ending Work in Process that
were 50 percent complete as to material and 75 percent complete as to
conversion. Decorating uses the FIFO method of process costing, and costs
associated with Decorating are:
Beginning WIP Inventory:
Transferred In $1,170
Material 4,320
Conversion 6,210
Current Period:
Transferred In ?
Material $67,745
Conversion 95,820
Refer to Baker Corporation. Assume 8,000 units were transferred to Decorating.
Compute the number of equivalent units as to costs in Decorating for the
transferred- in cost component.
Select one:
a. 8,000
b. 8,600
c. 7,700
d. 7,400
