Question

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 2,100 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $8,900. During the period, 8,100 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $4.10 for material and $5.10 for conversion costs. The cost of units transferred out during the month was: Multiple Choice $41,310 $63,400

Answer 1

$74,520

Step-by-step explanation:

The computation of cost of units transferred out during the month is shown below :-

Given that

Units were completed and transferred = $8,100

Cost of material = $4.10

Cost of conversion = $5.10

So,

Units transferred cost = $8,100 × ($4.10 + $5.10)

= $8,100 × $9.20

= $74,520

Since we have to find out the cost of the unit transferred out so we multiply the completed and transferred units with the total equivalent cost per unit.