Information for the month of May concerning Department A, the first stage of the production cycle, is as follows

Information for the month of May concerning Department A, the first stage of the production cycle, is as follows:

                                                                Materials                Conversion Costs

Beginning work in process                          $ 7,200                    $  6,000

Current costs                                            $27,800                    $16,050

Material costs                                            $35,000                    $22,050

Equivalent units based on average cost method                                                          SOLUTION

                                                                10,000                       9,800

Goods completed                        9,000 units

Ending work in process                        1,000

Material costs are added at the beginning of the process.  The ending work in process is 80 percent complete as to conversion costs.  How would the total costs accounted for be distributed using the average cost method?
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