Question

W Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 17,000 units. The total cost in the beginning work in process inventory was $24,800. A total of 51,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.40 for materials and $3.10 for conversion costs. The total cost of the units completed and transferred out of the department was:

Answer 1

Answer: Total cost of the units completed and transferred out of the department was $229500.

Explanation:

Given that,

Total units were transferred out of the department during the month = 51,000

costs per equivalent unit for materials = $1.40

costs per equivalent unit for conversion costs  = $3.10

Therefore,

Total cost of the units completed and transferred out of the department was:

= Total units transferred × costs per equivalent unit for materials + Total units transferred × costs per equivalent unit for conversion costs

= 51000 × $1.40 +  51000 × $3.10

= 71400 + 158100

= $229500