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.The cost of units transferred out during the month was?
A) $35,400.
B) $39,600.
C) $45,000.
D) $45,400.

Question

Quizplus · Accepted Answer

First, we need to calculate the equivalent units of production for both materials and conversion costs:
Equivalent units of materials = (3,000 units x 70% complete) + 9,000 units = 11,100 units
Equivalent units of conversion costs = (3,000 units x 60% complete) + 9,000 units = 8,400 units

Next, we need to calculate the cost of the units completed and transferred out:
Cost per equivalent unit = $2.00 for material + $3.00 for conversion costs = $5.00
Cost of units completed and transferred out = number of units completed and transferred out x cost per equivalent unit
Cost of units completed and transferred out = 9,000 units x $5.00 = $45,000

Therefore, the best choice is C, $45,000.

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