Answer:
Matrix Inc.
The cost of goods completed and transferred out under the weighted-average method is calculated to be:
C. $571,200
Explanation:
a) Data and Calculations:
Data for July:
Work in process inventory, July 1 (36,000 units)
Direct materials (100 % completed) $122,400
Conversion (50 % completed) 76,800
Balance in work in process inventory, July 1 $199,200
Units started during July 90,000
Units completed and transferred 102,000
Work in process inventory, July 31 24,000
Direct materials (100% completed)
Conversion (50% completed)
Cost incurred during July:
Direct materials$180,000
Conversion costs 288,000
Physical flow:
Work in process inventory, July 1 (36,000 units)
Units started during July 90,000
Units completed and transferred 102,000
Work in process inventory, July 31 24,000
Units Direct materials Conversion
Equivalent units of production:
Units completed and transferred 102,000 102,000 102,000
Ending work in process 24,000 24,000 (100%) 12,000 (50%)
Total equivalent units 126,000 114,000
Cost of production:
Direct materials Conversion Total
Beginning work in process $122,400 $76,800 $199,200
Costs incurred during July 180,000 288,000 468,000
Total production costs $302,400 $364,800 $667,200
Cost per equivalent unit:
Direct materials Conversion
Total production costs $302,400 $364,800
Total equivalent units 126,000 114,000
Cost per equivalent unit $2.40 $3.20
Cost assigned to: Direct materials Conversion Total
Completed and transferred out $244,800 $326,400 $571,200
Ending work in process 57,600 38,400 96,000
Total costs assigned $302,400 $364,800 $667,200
