The Davidson Company uses a weighted average process costing system. The followi

Question

The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100% % complete for conversions nits: ork in process, 1/1 60 15 started 105,00 ork in process, 1/31 40,00 209 Materials Conversiorn S 33,25 S332,50 egi inning work in process S 16,50 nt costs $643,50 What is the cost assigned to the units completed and transferred to the finishing department? $843,750 $777,500 $708,750 976,000

Explanation / Answer

Equivalent units Physical units Materials Conversion Units completed and transferred 125000 125000 125000 Ending inventory 40000 40000 8000 Total units 165000 165000 133000 Materials Labor Total costs 660000 365750 Equivalent units 165000 133000 Cost per Equivalent unit 4.00 2.75 Cost of units completed and transferred = 125000*(4+2.75)= 843750 Option 1 is correct

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