Question

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 10,000 units were started in production and ending work inventory consisted of 4,000 units that 90% complete with respect to material and 85% complete with respect to conversion costs. were If the costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was:

Answer 1

Total cost of units transferred out= $45,000

Step-by-step explanation:

The cost of units transferred out would be determined as follows:

Material = cost per unit × Number of equivalent units of units transferred out

Units transferred out = opening inventory + units introduced - closing inventory

= 3,000 + 10,000 - 4,000 = 9,000 units

Material cost = $2×9,000 = $18,000

Conversion cost = $3× 9,0000 = $27,000

Total cost of units transferred out = $18,000 +$27,000= $45,000