Question

DriveTrain, Inc. instituted a new process in October 2020. During October, 11,800 units were started in Department A. Of the units started, 8,450 were transferred to Department B, and 3,350 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $31,860 and conversion costs of $40,500 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing?

Answer 1

	Materials	Conversion costs
Units transferred	8450	8450
Work-in-Process at October 31	3350	1675	=3350*50%
Equivalent units	11800	10125
	Materials	Conversion costs	Total
Total costs	31860	40500
Divide by Equivalent units	11800	10125
Cost per Equivalent unit	2.70	4.00	6.70
Units transferred	8450
X Cost per Equivalent unit	6.70
Total costs transferred to Department B	56615