Question

The High Tide Company manufactures gadgets in a single process and uses the weighted average method of process costing. The following information is available:

Work in process inventory, Jan 1.                                            0 units

Units started in production    2,100 units

Units completed and transferred out 1,500 units

Work in process inventory, Dec. 31                                     600 units

Production costs:

   Direct materials $2,871

     Direct labor 2,498

   Manufacturing overhead    5,767

The units still in process are:

80% complete with respect to direct materials

40% complete with respect to conversion costs.

What is the cost of goods completed and transferred to finished goods?  

	a.	2,175
	b.	11,136
	c.	7,125
	d.	9,300

Answer 1

The answer has been presented in the supporting sheet, For detailed answer refer to the supporting sheet.