Question

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 32,000unitsConversion complete 70%Work-in-process inventory Sept. 30 23,000unitsConversion complete 50%Units started into production in Sept. 103,000 Units completed and transferred out ?unitsCosts 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

$1,498,900.

$1,295,902.

$1,194,302.

$1,270,302.

$1,225,302.

Answer 1

Answer: $1,295,902

Calculations:

Units completed and transferred out = Units in Beginning WIP + Units started during the period - Units in ending WIP = 32,000 + 103,000 - 23,000 = 112,000 units

Equivalent Units
	Materials	Conversion
Units completed and transferred out	112000	112000
Ending work in process:
Materials [23,000 x 100%]	23,000
Conversion [ 23,000 x 50%]		11,500
Total equivalent units	135,000	123,500
Cost per equivalent unit
	Materials	Conversion	Total Cost
Cost of Beginning WIP	$328,000	$171,000
Cost added during the period	$493,000	$506,900
Total cost	$821,000	$677,900
÷ Total equivalent units	135,000	123,500
=Cost per unit	$6.08	$5.49	$11.57

Cost of units completed and transferred out = 112,000 x $11.57 = $1,295.,902