Question

A company started a new product, and in the first month started 100,000100,000 units. The ending work in process inventory was 20,00020,000 units that were 1000% complete with materials and 75u% complete with conversion costs. There were 100,000100,000 units to account for, and the equivalent units for materials was $6$6 per unit while the equivalent units for conversion was $8$8 per unit. What is the value of the inventory transferred out, using the weighted-average inventory method

Answer 1

Answer:

$240,000

Explanation:

Calculation for What is the value of the inventory transferred out, using the weighted-average inventory method

First step is to calculate the Equivalent material cost=

Equivalent material cost= 20,000×100%×$6

Equivalent material cost= 120,000

Second step is to calculate Equivalent conversion cost

Equivalent conversion cost=20,000×75%×8

Equivalent conversion cost=120,000

Now let calculate the value of the inventory transferred out, using the weighted-average inventory method

Inventory value transferred out= 120,000+120,000

Inventory value transferred out=$240,000

Therefore the value of the inventory transferred out, using the weighted-average inventory method is $240,000