Question

Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. During the current period, the beginning work-in-process inventory cost was $13,525. Manufacturing cost added was $57,000. If Burgundy's ending work-in-process inventory was valued at $15,100, then cost of goods transferred must have been?

Answer 1

Answer:

$55,425

Explanation:

The computation of the costs of goods transferred is shown below:

= Beginning work-in-process inventory cost + manufacturing cost added -  ending work-in-process inventory cost

= $13,525 + $57,000 - $15,100

= $55,425

We simply added the Beginning work-in-process inventory cost and deduct the ending work-in-process inventory cost to the manufacturing cost so that the correct amount can come.