Problem 4-44A Alberta Instrument Company uses a process costing system. A unit of product passes through three departments- moulding, assembly, and finishing-before it is completed.
The following activity took place in the finishing department during May:
Units
|
Work in process inventory, May 1
|
2,080
|
Transferred in from the assembly department
|
14,800 |
Transferred out to finished goods inventory
|
11,700 |
Raw material is added at the beginning of processing in the finishing department. The work in process inventory was 70% complete in terms of conversion costs on May 1 and 40% complete in terms of conversion costs on May 31. Alberta Instrument Company uses the weighted-average method of process costing. The equivalent units and current period costs per equivalent unit of production for each cost factor are as follows for the finishing department:
Equivalent
Units
|
Current Period Costs per
Equivalent Unit
|
Transferred-in costs
|
15,250 |
$6.30
|
Raw materials
|
15,250
|
2.10
|
Conversion costs
|
13,100
|
4.00
|
Total
|
$12.40 |
The cost of units transferred to finished goods inventory during May.
The cost of the finishing department's work in process inventory on May 31. (Round answer to 0 decimal places, e.g. 5,275.)