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nordsb [41]
3 years ago
14

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a

particular department consisted of 18,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $25,200. A total of 53,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.6 for materials and $3.3 for conversion costs.
The total cost of the units completed and transferred out of the department was:

a.$259,700

b.$254,180

c.$189,740

d.$225,380
Business
1 answer:
Sidana [21]3 years ago
4 0

Answer:

The total cost of the units completed and transferred out of the department was a.$259,700

Explanation:

The Concept of Equivalent units measures the units in terms of completion percentage in their inputs

<em>Calculation of Equivalent Units in Goods Finished and Transferred out of the department:</em>

<em>It is important to note that physical units finished and transfered were 53,000 units</em>

<em>Therefore equivalent units were</em>

Materials 100%× 53,000 = 53,000

Conversion Cost 100%× 53,000 = 53,000

<em>Calculation of  total cost of the units completed and transferred out of the department</em>

Materials =53,000×$1.60 =$84,800

Conversion Cost = 53,000 ×$ 3.30 = $174,900

Total = $259,700

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