Asked by Michael Megler on Apr 30, 2024
Verified
Valley Manufacturing Company's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 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) $255,000.
B) $270,000.
C) $240,000.
D) $285,000.
Weighted-Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.
Conversion Costs
The combined costs of direct labor and overhead required to turn raw materials into finished products.
Materials Cost
The total expense incurred from acquiring raw materials used in the manufacturing process.
- Compute the aggregate cost of units completed and transferred, in addition to the units in the final work in process inventory.
Verified Answer
Learning Objectives
- Compute the aggregate cost of units completed and transferred, in addition to the units in the final work in process inventory.
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