Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.
Work-in-process Inventory Sept. 1 32,000units
Conversion complete 70%
Work-in-process inventory Sept. 30 23,000units
Conversion complete 50%
Units started into production in Sept. 103,000
Units completed and transferred out ? units
Costs
Work-in-process inventory Sept.1
Material P $171,000
Material Q 157,000
Conversion 171,000
Costs added in September
Material P $257,000
Material Q 236,000
Conversion 506,900
Material P is added at the beginning of work in the Mixing
Department. Material Q is also added in the Mixing Department, but
not until units of product are forty percent completed with regard
to conversion. Conversion costs are incurred uniformly during the
process.
The cost of goods completed and transferred out under the
weighted-average method is calculated to be: (Do not round
your intermediate calculations.)
Multiple Choice:
A $1,498,900
B $1,295,200
C $1,194,302
D $1,270,302
E $1,225,302
Units completed and transferred = 32000+103000-23000 = 112000 units
Equivalent units
Material P = 112000 + 23000 x 100% = 135000 units
Material Q = 112000 + 23000 x 100% = 135000 units
Conversion = 112000 + 23000 x 50% = 123500 units
Equivalent cost per unit = ($171000+257000+157000+236000) / 135000 + ($171000+506900) / 123500 = $11.57 per unit
Cost of Goods Completed and transferred out = 112000 x $11.57 = $1295840
There is no option for this answer, but this is correct
Nearest answer is B) $1,295,200
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