Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,700 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $43,000. During the month, 47,000 units were transferred out. The equivalent unit cost was computed to be $3.20 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:A. 255600B. 324300C. 254000D. 326000

Question

Rene

Business

1 September, 16:10

Vallin Manufacturing Corporation's beginning work in process inventory consisted of 8,700 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $43,000. During the month, 47,000 units were transferred out. The equivalent unit cost was computed to be $3.20 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:A. 255600B. 324300C. 254000D. 326000

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Briana Washington · Answer 1

B. 324300

Explanation:

As the company used weighted-average the equivalent cost already considers the beginning inventory cost.

47,000 units transferred out:

equivalent cost materials: $ 3.2

equivalent cost conversion: $ 3.7

Total unit cost: $ 6.9

units transferred x unit cost

transferred. out 47,000 x 6.9 = 324,300