Asked by Kassidy Trovato on May 10, 2024
Verified
Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 12,000 units, 100% complete with respect to materials cost and 20% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $39,400. A total of 42,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.40 for materials and $4.50 for conversion costs. The total cost of the units completed and transferred out of the department was:
A) $250,200
B) $289,800
C) $250,400
D) $189,000
Weighted-Average Method
An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.
Conversion Costs
Expenses related to transforming raw materials into finished goods, comprising direct labor and manufacturing overhead.
Process Costing
A costing method used in manufacturing where costs are assigned to batches or production runs, typically suitable for standardized products.
- Acquire knowledge about the implementation of the weighted-average technique in process costing.
- Compute the expenditure for units released and end stage work in process inventory.
Verified Answer
Learning Objectives
- Acquire knowledge about the implementation of the weighted-average technique in process costing.
- Compute the expenditure for units released and end stage work in process inventory.
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