The total cost of ending work in process inventory is $87,500 and the total cost of units transferred to the Bottling Department $536,000.
What is weighted average ?
The weighted normal calculation accounts for the various levels of statistical significance among the data points in either a data collection. Each value in this data collection is multiplied by a predetermined weight before the final calculation to produce a weighted normal.
A weighted normal, which gives each figure in a data collection equal weights, can be more accurate than a plain normal.
When calculating a simple normal, also known as the computation mean, all numbers are given equal weight and are scored in reverse, A weighted average's allotted weights,
Here, Equivalent unit of production = 40,000, conversion = 10,000
Cost per equivalent unit = $1.80, conversion = $1.56
Thus,
Cost of ending work in process inventory = $72,000, conversion = $15,500
Total cost = $87,500
and, units transferred to the next department = 160,000, conversion = 160,000
Cost per equivalent unit = $1.80, conversion = $1.56
Thus,
Cost of units completed and transferred out = $288,000, conversion = $248,000
Total cost = $536,000
So, The total cost of ending work in process inventory is $87,500 and the total cost of units transferred to the Bottling Department $536,000.
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