Sarver Company uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March: The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was $8.24.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
A) $482,287.20.
B) $502,640.00.
C) $523,240.00.
D) $561,144.00.

Question

Quizplus · Accepted Answer

To calculate the conversion cost assigned to units transferred out of the Fitting Department during March, we need to multiply the number of equivalent units transferred out by the cost per equivalent unit for conversion cost.

Number of equivalent units transferred out = 67,760 
Cost per equivalent unit for conversion cost = $8.24

Conversion cost assigned to units transferred out = 67,760 x $8.24 = $523,240

Therefore, the correct answer is choice C.

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