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aksik [14]
3 years ago
13

DriveTrain, Inc. instituted a new process in October 2020. During October, 12,400 units were started in Department A. Of the uni

ts started, 8,600 were transferred to Department B, and 3,800 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $33,480 and conversion costs of $42,000 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing
Business
2 answers:
alexandr1967 [171]3 years ago
8 0

Answer:

Transferred To Department B costs= $ 57,620

Materials = $2.7 * 8,600= $ 23,220

Conversion Costs = $ 4* 8,600= $ 34,400

Explanation:

                         Units          % of Completion                EUP

                                         Materials     C.C              Materials  C.C

Transferred    8,600          100            100          8600           8600

<u>WIP Ending     3,800          100            50          3800           1900 </u>

<u>Total               12,400                                         12,400          10500</u>

<u />

Materials Costs per equivalent Unit=  $33,480/ 12400= $ 2.7

Conversion Costs per equivalent Unit= $42,000/ 10,500= $ 4

Transferred To Department B costs= $ 57,620

Materials = $2.7 * 8,600= $ 23,220

Conversion Costs = $ 4* 8,600= $ 34,400

leonid [27]3 years ago
7 0

Answer:

Transferred unti cost: 57,620 using weighted-average method

Explanation:

Weighted average is completed units plus work complete in ending inventory:

Started            12,400

Transferred      8,600

Ending              3,800  

WIP equivalent units:

3,800 x 100% = 3,800

3,800 x   50% = 1,900

EU materials: 8,600 + 3,800 =  12,400

cost per EU 33,480 / 12,400 = 2.70

EU conversion: 8,600 + 1,900 = 10,500

cost per EU 42,000 / 10,500 = 4

Total unit cost 2.7 + 4 = 6.7

Transferred unti cost: 8,600 x 6.7 = 57,620

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