3\' Darlinger Company uses the weighted-averagemethod in its process costing sys

Question

3' Darlinger Company uses the weighted-averagemethod in its process costing system. There is only one processing department. The followin g dataabout this processint d'epartment were taken from the company's accounting records: o There were no units in the work in process inventory and 150,000 units in the finished goods inventory at the beginning of the month. o The company sold 500,000 units during the month. o There were 32,000 units, which werc 75Yo complete as to conversion costs, in the work in process inventory and 120,000 units in the finiihed goods inventory at it e end of the month. Part{a) How many units were transferred from the processing department to the finished goods department during the month?

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Explanation / Answer

Answer: The number of units transferred out during the month will be determined as follows.

Account for the all units in the finished goods department in order to compute the number of units that were transferred from the processing department to finished goods department during the month.

Calculation

(A) Units sold +Units in ending Inventory =Total units accounted for

500,000+120,000=620,000

(B) Total units accounted for =Total units accounted for

620,000=620,000(A)

(C) Units in begining Inventory + Units transferred In = Units to be account for

150,000+Units transferred In =620,000

Units transferred In from Processing department =470,000(C)

Begining Goods 150,000 Transferred out (sold) 500,000 Transferred in (started)( balancing figure) 470,000 Ending Inventory 120,000 Total units accounted for 620,000 Total units accounted for(A) 620,000

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