Question

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 20,000 units, 100% complete with respect to materials cost and 20% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $26,000. A total of 57,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.00 for materials and $3.70 for conversion costs. The total cost of the units completed and transferred out of the department was: Multiple Choice $282,720 $381,920 $324,900 $341,920

Answer 1

Answer:

The total cost of the units completed and transferred out of the department was: $324,900

Explanation:

First Calculate Total Cost per Equivalent Unit

Materials     $2.00

Conversion $3.70

Total            $5.70

Then, Calculate the Cost of Units Completed and Transferred

Units Completed and Transferred × Total Cost per Equivalent Unit

57,000 × $5.70

$324,900