Weighty Steel processes a single type of steel. For the current period the following information is given:

All materials are added at the beginning of the production process. The beginning inventory was 50% complete as to conversion, while the ending inventory was 25% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period? (Round intermediary dollar amounts to the nearest cent and total costs to the nearest whole dollar.)
A) $91,200
B) $115,050
C) $112,761
D) $121,600

Question

Weighty Steel processes a single type of steel. For the current period the following information is given:

All materials are added at the beginning of the production process. The beginning inventory was 50% complete as to conversion, while the ending inventory was 25% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period? (Round intermediary dollar amounts to the nearest cent and total costs to the nearest whole dollar.)
A) $91,200 
B) $115,050 
C) $112,761 
D) $121,600

Quizplus · Accepted Answer

EU (materials) = 20,100 + (3400 × 100%) = 23,500.
($4800 + $32,300) / 23,500 = $1.58 per unit for material
EU (conversion) = 20,100 + (3400 × 25%) = 20,950.
($5800 + $78,700) / 20,950 = $4.03 per unit for conversion.
Total cost per unit = $1.58 + $4.03 = $5.61
Cost of transferred units = 20,100 × $5.61 = $112,761

Weighty Steel Processes a Single Type of Steel