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 19,500 units. The total cost in the beginning work in process inventory was $25,800. A total of 56,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.90 for materials and $3.60 for conversion costs. The total cost of the units completed and transferred out of the department was:

Answer 1

Answer:

$308,000

Explanation:

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

= Materials cost + Conversion Cost

= (Units transferred out*Cost per equivalent for materials) + (Units transferred out*Cost per equivalent for conversion cost)

= (56,000 * $1.90) + (56,000 * $3.60)

= $106,400 + $201,600

= $308,000