Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 2,700 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $9,500. During the period, 8,700 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $4.70 for material and $5.70 for conversion costs. The cost of units transferred out during the month was:

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Business

Batman

29 November, 06:18

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 2,700 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $9,500. During the period, 8,700 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $4.70 for material and $5.70 for conversion costs. The cost of units transferred out during the month was:

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Chace · Answer 1

The cost of units transferred out during the month was:$ 99980

Explanation:

Mundes Corporation

Current Costs Added

Units Transferred Costs $ 90480

Materials = 8700 * $ 4.7 = $ 40890

Conversion = 8700 * $5.70 = $ 49590

Costs from Preceding Department (WIP beginning Inventory) = $ 9500

Total Costs = Costs Added + Costs from Preceding Department

= $ 90480 + $ 9500 = $ 99980

The Costs of units transferred out is $ 99980

The current costs are added to the preceding costs to get the total costs of the units transferred out.