Question

DriveTrain, Inc. instituted a new process in October 2020. During October, 13,800 units were started in Department A. Of the units started, 8,950 were transferred to Department B, and 4,850 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $37,260 and conversion costs of $45,500 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing

Answer 1

$59,965

Step-by-step explanation:

Equivalent Units

Materials = 8,950 x 100 % + 4,850 x 100 % = 13,800 units

Conversion Costs = 8,950 x 100 % + 4,850 x 50 % = 11,375 units

Total Costs

Materials = $37,260

Conversion Costs = $45,500

Cost per Equivalent unit

Materials = $37,260 / 13,800 units = $2.70

Conversion Costs = $45,500/ 11,375 units = $4.00

Total Unit Cost = $2.70 + $4.00 = $6.70

Total costs transferred to Department B

Total costs = 8,950 x $6.70 = $59,965

Therefore, the total costs transferred to Department B is $59,965