Walborn Corporation uses the weighted-average method in its process costing syst

Question

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: $207,000 $184,600 $204,980 $182,580

Explanation / Answer

units transferred= 45000

equivalent material cost per unit = 1.20

equivalent conversion cost per unit = 3.40

total cost per units = 1.20 + 3.40 = 4.60

cost of the units completed and transferred out of the department = units transferred * equivalent cost per unit

= 45000 * (1.20 + 3.40)

= 207000

ANSWER = A) 207000

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