Question

DriveTrain, Inc. instituted a new process in October 2020. During October, 12,400 units were started in Department A. Of the units started, 8,600 were transferred to Department B, and 3,800 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 $33,480 and conversion costs of $42,000 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

Transferred unti cost: 57,620 using weighted-average method

Step-by-step explanation:

Weighted average is completed units plus work complete in ending inventory:

Started 12,400

Transferred 8,600

Ending 3,800

WIP equivalent units:

3,800 x 100% = 3,800

3,800 x 50% = 1,900

EU materials: 8,600 + 3,800 = 12,400

cost per EU 33,480 / 12,400 = 2.70

EU conversion: 8,600 + 1,900 = 10,500

cost per EU 42,000 / 10,500 = 4

Total unit cost 2.7 + 4 = 6.7

Transferred unti cost: 8,600 x 6.7 = 57,620

Answer 2

Transferred To Department B costs= $ 57,620

Materials = $2.7 * 8,600= $ 23,220

Conversion Costs = $ 4* 8,600= $ 34,400

Step-by-step explanation:

Units % of Completion EUP

Materials C.C Materials C.C

Transferred 8,600 100 100 8600 8600

WIP Ending 3,800 100 50 3800 1900

Total 12,400 12,400 10500

Materials Costs per equivalent Unit= $33,480/ 12400= $ 2.7

Conversion Costs per equivalent Unit= $42,000/ 10,500= $ 4

Transferred To Department B costs= $ 57,620

Materials = $2.7 * 8,600= $ 23,220

Conversion Costs = $ 4* 8,600= $ 34,400