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, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. What was the cost of units transferred out during the month?

A. $45,000
B. $45,400
C. $35,400
D. $39,600

Answer 1

Answer: cost of units transferred out during the month=A. $45,000

Step-by-step explanation:

Material costs =Number of units completed and transferred out x Cost per equivalent unit for material

= 9000 units x $2.00 = $18,000

Conversion cost = Number of units completed and transferred out x Cost per equivalent unit for conversion costs

= 9000 units x $3.00 = $27,000

Costs of u nits transferred out during the month = Conversion costs +Material costs

= $18,000 + $27,000

$45,000