Clarke Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are added at the beginning of production. The total cost per equivalent unit in process in March was $6.00, consisting of $4.80 for materials and $1.40 for conversion. During the month, 9,000 units of product were transferred to finished goods inventory; on March 31, 3,500 units were in process, 10 percent converted. The company uses weighted average costing.

a - Cost of finished goods = $54000

b - Cost of ending wip = $17290

c - Cost of beginning and total = $71290

Explanation:

The question has three requirements mentioned as follows;

a - Determine the cost of goods transferred to finished goods inventory.

b - Determine the cost of the ending work-in-process inventory.

c - Determine the total cost of the beginning work-in-process inventory plus the current manufacturing costs?

The solutions to each requirement are as follows:

a - cost of finished goods?

The cost of finished goods (9000 units) includes all of the production cost per unit which in this question is $6.

So the cost of finished goods is = $6*9000

Cost of finished goods = $54000

b - cost of ending work - in-process inventory?

Ending work-in-process inventory are 3500 units of which 10% has been converted. This implies that ending work-in-process inventory would have consumed 100% material but 0% conversion cost since they are under process yet but 10% (i. e 3500*10%=350 units) of the work-in-process have been converted which means only 10% of the work-in-process inventory would have consumed total cost, therefore the cost of ending work-in-process would be:

cost of ending wip inventory = (3500*$4.80) + (350*$1.40)

Cost of ending wip = $17290

c - cost of beginning wip and current manufacturing cost?

Cost of beginning wip and current manufacturing cost would be the total cost of finished stock and ending work-in-process inventory (i. e adding answer of a and b)

cost = $54000+$17290

cost = $71290