Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. During the current period, the beginning work-in-progress inventory cost was £13,525. Manufacturing cost added was £57,000. If Burgundy's ending work-in-progress inventory was valued at £15,100, then cost of goods transferred must have been
A)£70,525.
B)£55,425.
C)£84,625.
D)£58,575.

Question

Quizplus · Accepted Answer

Using the weighted average method, the total cost to be accounted for is:

Beginning work-in-progress inventory cost + Manufacturing cost added = £13,525 + £57,000 = £70,525

To find the cost of goods transferred, we can use the following equation:

Cost of goods transferred = Total cost to be accounted for - Ending work-in-progress inventory
Cost of goods transferred = £70,525 - £15,100 = £55,425

Therefore, the answer is B.

Burgundy Manufacturing Uses a Process Cost System and Computes Cost