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Kenton Industrial Corporation uses the weighted-average method in its process costing system. During April, the Baker Assembly Department completed its processing of 18,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during April amounted to $855,000 in total. The ending inventory in April consisted of 1,500 units, which were 90% complete with respect to materials and 40% complete with respect to labor and over head. The costs per equivalent unit for the month were as follows:
Required:
1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. 2. Compute the cost of ending inventory and of the units transferred to the next department for April. 3. Prepare cost reconciliation for April month.
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Alexandro Velez and Nikhail Arora of Back to the Roots must understand manufacturing costs to effectively operate and succeed as a profitable and efficient business.
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