Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 20,500 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $26,200. A total of 58,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.10 for materials and $3.80 for conversion costs. The total cost of the units completed and transferred out of the department was:
A) $342,200
B) $373,660
C) $276,080
D) $330,610

Question

Quizplus · Accepted Answer

The total cost of the units completed and transferred out of the department is the sum of the cost of the beginning work in process inventory and the cost of the units started and completed during the month. The cost of the beginning work in process inventory is $26,200. The cost of the units started and completed during the month is 58,000 units x ($2.10 + $3.80) = $342,200. Therefore, the total cost of the units completed and transferred out of the department is $26,200 + $342,200 = $373,660.

Walbin Corporation Uses the Weighted-Average Method in Its Process Costing