Trapp Company uses the weighted-average method in its process costing system.The beginning work-in-process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs.The cost of the beginning work-in-process inventory in the department was recorded as $10,000.During the period,9,000 units were completed and transferred on to the next department.The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs.What was the cost of units transferred out during the month?
A) $39,600.
B) $45,000.
C) $45,400.
D) $35,400.

Question

Quizplus · Accepted Answer

First, calculate the cost of beginning inventory in terms of equivalent units:

Materials: 3,000 x 70% = 2,100 units
Conversion costs: 3,000 x 60% = 1,800 units

Total equivalent units for beginning inventory: 2,100 + 1,800 = 3,900 units

Next, calculate the equivalent units for the units completed during the period:

Materials: 9,000 units completed x 100% = 9,000 units
Conversion costs: 9,000 units completed x 100% = 9,000 units

Total equivalent units for current period: 9,000 units

Total equivalent units for the period: 3,900 + 9,000 = 12,900 units

Calculate the total cost of the units completed during the period:

Materials: 9,000 units completed x $2.00 per unit = $18,000
Conversion costs: 9,000 units completed x $3.00 per unit = $27,000

Total cost of units completed during the period: $45,000 (A)

Trapp Company Uses the Weighted-Average Method in Its Process Costing