Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is: $\begin{array} { l r r }
\text { Beginning Work in Process } ( 40 \% \text { complete, } \$ 1,100 ) & 200 & \text { units } \
\text { Ending inventory of Work in Process } ( 80 \% \text { complete) } & 400 & \text { units } \
\text { Total units started during the year } & 320 & \text { units }
\end{array}$
A) 3,200 units.
B) 3,400 units.
C) 3,000 units.
D) 3,500 units.
E) 3,160 units.

Question

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is: $\begin{array} { l r r } 
\text { Beginning Work in Process } ( 40 \% \text { complete, } \$ 1,100 ) & 200 & \text { units } \
\text { Ending inventory of Work in Process } ( 80 \% \text { complete) } & 400 & \text { units } \
\text { Total units started during the year } & 320 & \text { units }
\end{array}$
A) 3,200 units.
B) 3,400 units.
C) 3,000 units.
D) 3,500 units.
E) 3,160 units.

Quizplus · Accepted Answer

Using the weighted average method, the cost of goods sold and ending inventory are determined using the weighted average cost per unit.

To find the number of units transferred to finished goods, we need to subtract the ending inventory from the total units started during the year.

Total units started during the year = beginning inventory + units started during the year
= 0 + 3,200 = 3,200 units

Ending inventory = 400 units (given in the problem as the final inventory balance)
Weighted average cost per unit = total cost of beginning inventory + total cost of units started during the year / total units available for sale 
= ($0 x 0) + ($5,000 x 3,200) / 3,200 = $5,000

Cost of goods sold = weighted average cost per unit x units sold 
= $5,000 x (3,200 - 400) = $14,400

Therefore, the number of units transferred to finished goods = total units started during the year - ending inventory 
= 3,200 - 400 = 3,000 units.

The answer is C, 3,000 units.

Metaline Corp A) 3,200 Units