Epsilon Co. manufactures a product that is processed through two departments. The<\/p>
following information was obtained for the first department in January:<\/p>
All direct materials are added at the beginning of the process, while conversion costs<\/p>
are added evenly throughout the process.<\/p>
Inspection takes place when the units are 40% complete. Normal spoilage is<\/p>
considered to be 2% of good units passing inspection in the period. All spoiled units<\/p>
are discarded.<\/p>
Beginning work-in-process (WIP) consisted of 100,000 units, 45% complete with<\/p>
respect to conversion costs.<\/p>
Costs in beginning inventory included direct materials of $122,750 and conversion<\/p>
costs of $200,920.<\/p>
There were 247,500 units started during the month, and costs added to production<\/p>
during the month totaled $303,800 for direct materials and $497,200 in conversion<\/p>
costs.<\/p>
A total of 250,000 units were transferred to the second department, and 93,900 units<\/p>
remained in ending WIP, 20% complete<\/p>
Assume that Epsilon uses the weighted-average method for process costing and<\/p>
that the equivalent units have been correctly calculated as 347,500 for direct<\/p>
materials and 270,220 for conversion. What is the total cost of the good units<\/p>
transferred to the second department for January? (Use four decimal places for the<\/p>
equivalent unit cost calculations.)<\/p>", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "0538438819", "uri": "\/textbooks\/investing-in-your-future-2nd-edition-9780538438810-9781111794385", "name": "Investing In Your Future", "edition": "2nd\u00a0Edition" }, "question_posted": "2024-06-29 01:24:51", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-circular-loop-of-wire-with-radius-r-lies-in", "description": "A circular loop of wire, with radius R, lies in the xy plane, centered at the origin. and carries a current 1 running counterclockwise as viewed from the positive z axis. 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