Respuesta :
Answer:
103,800
Explanation:
The cost of units transferred to finished goods will be calculated by adding all the work in process cost minus ending balance of work in process.
Beginning WIP + Direct Material + Direct Labor + Applied Overhead - Ending WIP
6,200 + 48,800 + 31,300 + 17500 - 0
Cost of units transferred to Finished goods = 103,800
Answer:
$103, 800
Explanation:
In order to calculate the cost of units transferred goods, we need to consider which costs are incurred in order to arrive at the finished good.
1. Opening work-in-process:
The opening inventory of work-in-process inventory is used to arrive at the finished good. Work is continued on the work-in-process inventory until becomes finished good. The value of work-in-process inventory is added in order to arrive at the value of finished goods.
2. Direct Materials:
Direct materials are the materials that are added directly to the product in order to arrive at the finished good. The cost of all direct materials used will be added in order to calculate the value that will be transferred to finished goods.
3. Direct Labor:
Direct labor is the labor used directly on the product in order to arrive at the finished good. The cost of all direct labor used will be added in order to calculate the value that will be transferred to finished goods.
4. Applied Overheads:
Applied overheads are the costs that are incurred in order to arrive at the finished good. Overheads include:
- Factory electricity
- Factory water
- Factory maintenance
- Administration incurred directly for the manufacture of the product
- Any indirect labor
- Any indirect materials
All of the above-mentioned costs are added together in order to determine the value that will be transferred to finished goods.
Opening WIP = $6, 200
Direct materials = $48, 800
Direct labor = $31, 300
Applied overheads = $17, 500
Total costs transferred to finished goods = $6, 200 + $48, 800 + $31, 300 + $17, 500
= $103, 800
