Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was:
A)$207,000
B)$184,600
C)$204,980
D)$182,580

Question

Quizplus · Accepted Answer

The total cost of units transferred out is calculated by multiplying the number of units transferred out by the sum of the costs per equivalent unit for materials and conversion: 45,000 units * ($1.20 + $3.40) = $207,000.

Walborn Corporation Uses the Weighted-Average Method in Its Process Costing