Question

In a​ department, 35 comma 000 units are completed and transferred out and 12 comma 400 remain in ending WIP at 85​% complete. If an equivalent unit costs $ 10.00 for direct​ materials, what is the value of materials transferred​ out?

Answer 1

$350,000

Step-by-step explanation:

The computation of the value of material transferred out is shown below:

= Completed and transferred units × equivalent cost for direct material per unit

= 35,000 units × $10

= $350,000

Therefore by multiplying the completed & transferred units with the equivalent cost for direct material per unit we can get the value of material transferred out