Walborn Corporation uses the weighted-average method in its process costing syst
ID: 2492720 • Letter: W
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 20,500 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 $26,200. A total of 58,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.1 for materials and $3.8 for conversion costs. The total cost of the units completed and transferred out of the department was: $373,660 $342,200 $276,080 $330,610Explanation / Answer
As in the given question the number of units of closing WIP is not given we can that the total units of 58,000 were completed and trasferred out.
we can get the total cost of units completed and transferred out by multiplying number of units with the total equivalant cost.
Total Cost of units completed and transferred out = 58,000*($2.1+$3.8) = $3,42,200.
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