The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. $$\begin{array} { | l | r | r | }
\hline \text { Units: } & { \text { units } } & \begin{array} { c }
\% \text { complete for } \
\text { conversions }
\end{array} \
\hline \text { work in process, } 1 / 1 & 60,000 & 15 \% \
\hline \text { started } & 105,000 & \
\hline \text { work in process, } 1 / 31 & 40,000 & 20 \% \\hline \
\hline \text { Costs: } & & \
\hline & \text { Materials } & \text { Conversion } \
\hline \text { beginning work in process } & \$ 16,500 & \$ 33,250 \
\hline \text { current costs } & \$ 643,500 & \$ 332,500 \
\hline
\end{array}$$ What is the cost assigned to the units completed and transferred to finishing?
A)$843,750
B)$708,750
C)$777,500
D)$976,000
E)none of the above

Question

The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. $$\begin{array} { | l | r | r | } 
\hline \text { Units: } &  { \text { units } } & \begin{array} { c } 
\% \text { complete for } \
\text { conversions }
\end{array} \
\hline \text { work in process, } 1 / 1 & 60,000 & 15 \% \
\hline \text { started } & 105,000 & \
\hline \text { work in process, } 1 / 31 & 40,000 & 20 \% \\hline \
\hline \text { Costs: } & & \
\hline & \text { Materials } & \text { Conversion } \
\hline \text { beginning work in process } & \$ 16,500 & \$ 33,250 \
\hline \text { current costs } & \$ 643,500 & \$ 332,500 \
\hline
\end{array}$$ What is the cost assigned to the units completed and transferred to finishing?
A)$843,750
B)$708,750
C)$777,500
D)$976,000
E)none of the above

Quizplus · Accepted Answer

The cost assigned to the units completed and transferred to finishing is the sum of the materials and conversion costs incurred during the period, plus the beginning work in process inventory costs. The materials costs incurred during the period are $643,500, and the conversion costs incurred during the period are $332,500. The beginning work in process inventory costs are $16,500 for materials and $33,250 for conversion costs. Therefore, the total cost assigned to the units completed and transferred to finishing is $643,500 + $332,500 + $16,500 + $33,250 = $843,750.

The Davidson Company Uses a Weighted Average Process Costing System