Use the following information for Multiple Choice Questions below:
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Also assume that current costs included $34,998 of materials and $97,412 of conversion costs. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.
-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

Question

Use the following information for Multiple Choice Questions below: 
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
  Also assume that current costs included $34,998 of materials and $97,412 of conversion costs. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $6.64 and $19.40, respectively.
-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

Quizplus · Accepted Answer

[Not all information below pertains to this question.]
The solution requires a two-step process. First, calculate the total costs for conversion costs by multiplying the average cost per unit by the total number of equivalent units for the item.
F1F1F1S1uf0b7F1F1F10Total conversion costs = $19.40 per EUP x 5,430 equivalent units = $105,342.
Then, back into the dollar amount added to beginning inventory last period by subtracting the amount of current costs added this year.
F1F1F1S1uf0b7F1F1F10Conversion costs in beginning inventory from last period = Total conversion costs $105,342 - Conversion costs added this period $97,412 =$7,930.
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Use the Following Information for Multiple Choice Questions Below