Amber Sdn Bhd is using the weighted average method in a process costing system. The data of the processing department for the current month is as follows:

| | |
| :---------------------------- | :-------------------- |
| Beginning work in process: | 700 |
| % completed: direct material | 80% |
| % completed: conversion | 40% |
| Beginning inventory cost: | |
| Direct material cost | RM1904 |
| Conversion cost | RM8624 |
| Beginning unit in process | 29000 |
| Completed unit and transferred out | 28800 |
| Additional cost for the month: | |
| Direct material cost | RM104044 |
| Conversion cost | RM875266 |
| Ending work in process: | |
| Units in process | 900 |
| % completed: direct material | 70% |
| % completed: conversion | 20% |

Required:
1. Calculate equivalent units (29430, 28980)
2. Calculate equivalent cost per unit (RM30.50, RM34.10)
3. Calculate cost of ending work in process (RM7758)
4. Calculate transferred out cost to the next department (RM982080)

To solve this problem, we are using the weighted average method in process costing which involves several calculations related to cost and productivity in a manufacturing process. Here are the steps involved:

Calculate Equivalent Units
- Direct Material:
  Equivalent units for direct material are based on the number of units completed and the units in ending work in process.
  [tex]\text{Equivalent Units for Direct Materials} = \text{Units Completed and Transferred Out} + (\text{Units in Ending WIP} \times \text{Completion % for Direct Materials})[/tex]
  [tex]= 28800 + (900 \times 0.70)[/tex]
  [tex]= 28800 + 630 = 29430[/tex]
- Conversion Costs:
  Equivalent units for conversion costs are calculated similarly.
  [tex]\text{Equivalent Units for Conversion} = \text{Units Completed and Transferred Out} + (\text{Units in Ending WIP} \times \text{Completion % for Conversion})[/tex]
  [tex]= 28800 + (900 \times 0.20)[/tex]
  [tex]= 28800 + 180 = 28980[/tex]
Calculate Equivalent Cost Per Unit
- First, calculate the total costs for direct materials and conversion.
  [tex]\text{Total Direct Material Cost} = \text{Beginning Direct Material Cost} + \text{Additional Direct Material Cost}[/tex]
  [tex]= RM1904 + RM104044 = RM105948[/tex]
  [tex]\text{Total Conversion Cost} = \text{Beginning Conversion Cost} + \text{Additional Conversion Cost}[/tex]
  [tex]= RM8624 + RM875266 = RM883890[/tex]
- Calculate the cost per equivalent unit.
  [tex]\text{Cost per Equivalent Unit for Materials} = \frac{\text{Total Direct Material Cost}}{\text{Equivalent Units for Direct Materials}}[/tex]
  [tex]= \frac{RM105948}{29430} \approx RM3.60[/tex]
  [tex]\text{Cost per Equivalent Unit for Conversion} = \frac{\text{Total Conversion Cost}}{\text{Equivalent Units for Conversion}}[/tex]
  [tex]= \frac{RM883890}{28980} \approx RM30.50[/tex]
Calculate Cost of Ending Work in Process
- Use the equivalent units and equivalent cost to find the total cost of the ending WIP.
  [tex]\text{Cost of Ending WIP} = (\text{Ending Units} \times \text{% Completion for Materials} \times \text{Material Cost per Unit}) + (\text{Ending Units} \times \text{% Completion for Conversion} \times \text{Conversion Cost per Unit})[/tex]
  [tex]= (900 \times 0.70 \times RM3.60) + (900 \times 0.20 \times RM30.50)[/tex]
  [tex]= 630 \times RM3.60 + 180 \times RM30.50[/tex]
  [tex]= RM2268 + RM5490[/tex]
  [tex]= RM7758[/tex]
Calculate Transferred Out Cost to the Next Department
- Finally, we calculate the transferred out cost.
  [tex]\text{Transferred Cost} = \text{Units Transferred} \times (\text{Material Cost per Unit} + \text{Conversion Cost per Unit})[/tex]
  [tex]= 28800 \times (RM3.60 + RM30.50)[/tex]
  [tex]= 28800 \times RM34.10[/tex]
  [tex]= RM982080[/tex]

In summary, we calculated the equivalent units for both direct materials and conversion costs, the equivalent cost per unit of production, the cost of units still in process at the month-end, and the cost of units transferred to the next department.