Walbin Corporation uses the weighted-average method in its process costing syste

Question

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,500 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22.600. A total of 40,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.30 for materials and $3.10 for conversion costs. The total cost of the units completed and transferred out of the department was: Multiple Choice $176,000 $162.740 $126,400 $147790

Explanation / Answer

40,000 units were transferred out of the department.

Cost per equivalent unit:

Material = $1.30 per unit

Conversion cost = $3.10 per unit

Hence, total cost per unit = Material cost + Conversion cost

= 1.30 + 3.10

= $4.40

Hence, total cost of 40,000 units = 40,000 x 4.40

= $176,000

Hence, correct option is (a)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.