Ask Question
6 June, 20:12

During the current period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were one-fifth complete at the beginning of the period and 30,000 were started and completed during the period. Also during the period, 10,000 units were started but brought only to a stage of being three-fifths completed. If the weighted-average method is used and $14,000 of overhead was charged to Department A during the period, how much overhead should be allocated to the ending goods in process inventory? A. $1,615B. $3,250C. $2,600D. $2,500E. $1,500

+1
Answers (1)
  1. 6 June, 23:31
    0
    A. $1,615

    Explanation:

    Provided information,

    Total transferred units = 50,000

    Opening units = 20,000 which were 1/5 th complete

    Equivalent units = 4,000

    That means on the remaining 20,000 - 4,000 = 16,000 units full overheads were applied.

    30,000 units were started and completed during the month, for which entire overheads will be added.

    Newly started = 10,000 units 3/5th complete = 6,000 units completed in closing inventory.

    Therefore total equivalent completed units on which overheads applied = 16,000 + 30,000 + 6,000 = 52,000 units

    Ending goods in inventory = 10,000 units which are 6,000 equivalent units completed

    Total overheads for the month = $14,000

    Overheads = $14,000/52,000 = 0.269 per unit

    For 6,000 units = $1,615.38

    Therefore correct option is

    A. $1,615
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “During the current period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were one-fifth ...” 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