Question

Matrix Inc. calculates the cost for an equivalent unit of production using the weighted-average method.

Data for July:
Work-in-process inventory, July 1 (39,000 units):
Direct materials (94% completed)	$	122,700
Conversion (56% completed)		77,150
Balance in work in process inventory, July 1	$	199,850
Units started during July		93,000
Units completed and transferred		107,400
Work-in-process inventory, July 31:
Direct materials (94% completed)		24,600
Conversion (56% completed)
Cost incurred during July:
Direct materials	$	183,000
Conversion costs		291,000

The cost of goods completed and transferred out under the weighted-average method is calculated to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)

Multiple Choice

• a. $96,936.

• b. $618,030.

• c. $577,812.

• d. $586,550.

• e. $587,950.

Answer 1

	Materials	Conversion
Units completed and transferred out	107400	107400
Work in process, ending:
24600 X 94%	23124
24600 X 56%		13776
Equivalent units of production	130524	121176
	Materials	Conversion
Work in process, July 1	122700	77150
Cost added during July	183000	291000
Total costs	305700	368150
Divide by Equivalent units of production	130524	121176
Cost per Equivalent unit	2.34	3.04
	Materials	Conversion	Total
Units completed and transferred out	107400	107400
X Cost per Equivalent unit	2.34	3.04
Cost of Units completed and transferred out	251316	326496	577812
Option C $577,812 is correct