Ask Question
27 April, 01:44

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 18,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $25,200. A total of 53,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.6 for materials and $3.3 for conversion costs.

The total cost of the units completed and transferred out of the department was:

a.$259,700

b.$254,180

c.$189,740

d.$225,380

+2
Answers (1)
  1. 27 April, 01:52
    0
    The total cost of the units completed and transferred out of the department was a.$259,700

    Explanation:

    The Concept of Equivalent units measures the units in terms of completion percentage in their inputs

    Calculation of Equivalent Units in Goods Finished and Transferred out of the department:

    It is important to note that physical units finished and transfered were 53,000 units

    Therefore equivalent units were

    Materials 100% * 53,000 = 53,000

    Conversion Cost 100% * 53,000 = 53,000

    Calculation of total cost of the units completed and transferred out of the department

    Materials = 53,000*$1.60 = $84,800

    Conversion Cost = 53,000 * $ 3.30 = $174,900

    Total = $259,700
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers