Data concerning a recent period’s activity in the prep department, the first processing department in a company that uses process costing, appear below: materials conversion equivalent units in ending work in process inventory 2,000 800 cost per equivalent unit $ 13.86 $ 4.43 a total of 20,100 units were completed and transferred to the next processing department during the period. required: 1. compute the cost of ending work in process inventory for materials, conversion, and in total. 2. compute the cost of the units completed and transferred out for materials, conversion, and in total.

Ending WIP inventory: 31,264

Complete and transferred-out 367,629‬

Explanation:

Ending WIP inventory:

we mutiply the equivalent units by the equivalent cost

materials 2,000 x 13.86 = 27,720

conversion   800 x 4.43 =  3,544

                            total     = 31,264

transferred units

as this are complete we can add up each cost component and do a single multiplication

13.86 + 4.43 = 18.29 cost for complete unit

20,100 x 18.29 = 367,629‬

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