Vallin Manufacturing Corporation\'s beginning work in process inventory consiste

Question

Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,000 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $36,000. During the month, 40,000 units were transferred out. The equivalent unit cost was computed to be $2.50 for materials and $3.00 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was Multiple Choice $256,000 $185,600 $220,000

Explanation / Answer

Total cost of units completed and transferred out = Equivalent unit cost * units transferred out Material cost of units transferred out = $2.5*40000 = $100,000 Conversion cost of units transferred out= $3*40000= $120,000 Total cost =$100,000+$120,000=$220,000

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