Trapp Corporation uses the weighted-average method in its process costing system

Question

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 6,000 units that were 80% complete with respect to materials and 70% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $13,000. During the period, 12,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.6 for material and $3.6 for conversion costs. The cost of units transferred out during the month was:

A.$68,160

B.$92,160

C.$61,440

D.$74,400

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 6,000 units that were 80% complete with respect to materials and 70% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $13,000. During the period, 12,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.6 for material and $3.6 for conversion costs. The cost of units transferred out during the month was:

Explanation / Answer

Solution.

Cost of units transferred out = Units were completed and transferred on to the next department x Costs per equivalent unit for the period

= 12,000 x $6.2 = $74,400.

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