Question

Vallin Manufacturing Corporation’s beginning work in process inventory consisted of 8,700 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $43,000. During the month, 47,000 units were transferred out. The equivalent unit cost was computed to be $3.20 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:A. 255600B. 324300C. 254000D. 326000

Answer 1

Answer:

B. 324300

Explanation:

As the company used weighted-average the equivalent cost already considers the beginning inventory cost.

47,000 units transferred out:

equivalent cost materials:    $  3.2

equivalent cost conversion: $  3.7

Total unit cost:                       $  6.9

units transferred x unit cost

transferred.out 47,000 x 6.9 = 324,300