PA4.

LO 5.3During March, the following costs were charged to the manufacturing department: $14,886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?

Cost of inventory transferred = $ 41,418

Cost Of Ending Inventory = $ 1,944

Explanation:

This problem require us to calculate cost of inventory transferred and the balance in work in process inventory.

A-Material Cost = $14,886

B-Conversion costs = $28,476 (14,645+13,820)

C-Units transferred out = 30,680

D-Ending Inventory = 2,400

E-Equivalent units of material = 33,080

F-Equivalent units of conversion costs = 31,640

G-Equivalent cost per unit of material = $0.45 (A/E)

H-Equivalent cost per unit of conversion costs = $ 0.9 (B/F)

I-Equivalent cost per unit = $1.35 (G+H)

J-Cost of inventory transferred = $ 41,418 (I*C)

K-Cost Of Ending Inventory = $ 1,944 (H * (F-C) + (D*0.45))