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3 January, 17:27

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

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  1. 3 January, 17:30
    0
    Transferred To Department B costs = $ 57,620

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

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

    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
  2. 3 January, 17:45
    0
    Transferred unti cost: 57,620 using weighted-average method

    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
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