DO NOT ANSWER IF NOT SURE Matrix Inc. calculates cost for an equivalent unit of
ID: 2500529 • Letter: D
Question
DO NOT ANSWER IF NOT SURE
Matrix Inc. calculates cost for an equivalent unit of production using both the weighted-average and the FIFO methods. Data for July Work-in-process inventory, July 1 (37,700 units) Direct materials (100% completed) $130,210 Conversion (52% completed) $82,180 Balance in work in process inventory, July 1 $212,390 Units started during July 96,000 Units completed and transferred 108,000 Work-in-process inventory, July 31 Direct materials (100% completed) 25,700 Conversion (53% completed) Cost incurred during July Direct materials $188,000 Conversion costs $308,800 The cost of goods completed and transferred out under the weighted-average method is calculated to be: $602,235 $605,235 $604,235 $606,235 $603,235Explanation / Answer
13621 [25700*.53]
Total cost per equivalent unit = 2.38003 +3.21474 = $ 5.59477 per unit
cost of unit transfered out = 108000 * 5.59477 =$ 604,235
correct option is "c"
Material conversion cost Units transfered out 108000 108000 Ending inventory 2570013621 [25700*.53]
Total equivalent units 133700 121621 Total cost in WIP 318210 [130210+188000] 390980 [82180+308800] Cost per equivalent unit 318210 / 133700 =$ 2.38003 390980/121621 = $ 3.21474Related Questions
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