Response to the following problem:
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 of production in ending work in process .... 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:
Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory.