Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,100 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. How many units are in ending work in process inventory in the first processing department at the end of the month? 500 Units Please show work, which is correct? Solution When weighted-average method is used, equivalent completed units are not found out for work done for completing opening work-in-process. Thus, no distinction is made between units which are partially completed in preceding period and those units which are started and completed during the period. Cost of opening inventory is added element wise to cost incurred during the process and total is divided of the followings: (a) Units completed during the year. (b) Equivalent completed units for work done on closing inventory. Computation of ending work in process inventory in the first processing department at the end of the month. We have, Opening work in process units = 700 units Add: Units introduced during the year = 8,100 units Total units for the year = 8,800 units Less: Units transferred during the year=7,600 units Closing work in process units = 1,200 units Hence, ending work in process inventory in the first processing department at the end of the month is 1,200 Units. .

1. Chae Corporation uses the weighted-average method in its process costing system. This month,
the beginning inventory in the first processing department consisted of 700 units. The costs and
percentage completion of these units in beginning inventory were:
A total of 8,100 units were started and 7,600 units were transferred to the second processing
department during the month. The following costs were incurred in the first processing
department during the month:
The ending inventory was 80% complete with respect to materials and 75% complete with
respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed.
How many units are in ending work in process inventory in the first processing department at the
end of the month?
500 Units
Please show work, which is correct?
Chae Corporation uses the weighted-average method in its process costing system. This month,
the beginning inventory in the first processing department consisted of 700 units. The costs and
percentage completion of these units in beginning inventory were:
Solution
When weighted-average method is used, equivalent completed units are not found out for work
done for completing opening work-in-process. Thus, no distinction is made between units which
are partially completed in preceding period and those units which are started and completed
during the period. Cost of opening inventory is added element wise to cost incurred during the
process and total is divided of the followings:
(a) Units completed during the year.
(b) Equivalent completed units for work done on closing inventory.

2. Computation of ending work in process inventory in the first processing department at the
end of the month. We have,
Opening work in process units = 700 units
Add: Units introduced during the year = 8,100 units
Total units for the year = 8,800 units
Less: Units transferred during the year=7,600 units
Closing work in process units = 1,200 units
Hence, ending work in process inventory in the first processing department at the end of
the month is 1,200 Units.