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21 February, 21:02

Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,700 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $43,000. During the month, 47,000 units were transferred out. The equivalent unit cost was computed to be $3.20 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:A. 255600B. 324300C. 254000D. 326000

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  1. 21 February, 22:26
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    B. 324300

    Explanation:

    As the company used weighted-average the equivalent cost already considers the beginning inventory cost.

    47,000 units transferred out:

    equivalent cost materials: $ 3.2

    equivalent cost conversion: $ 3.7

    Total unit cost: $ 6.9

    units transferred x unit cost

    transferred. out 47,000 x 6.9 = 324,300
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