Question

Pacific Ink had beginning work-in-process inventory of $744,960 on October 1. Of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion. The 48,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,343,600 for direct materials and $3,027,840 for conversion.

Exercise 8-38 (Static) Assign Costs to Goods Transferred Out and Ending Inventory: Weighted-Average Method (LO 8-2, 3)

Compute the costs of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.)

Answer 1

AnSuer statement of equivalent production Conversios cos Drect mateials Outpu Pathaulax unih untts o4000 00 l02000 l0ol (02,00o Transfeed out 12000 24000 Shding mverty 300ం Stu,000 126,000 stalemert of cost per Eauualeut units Co Equvalent untt Opening oTp cost Currert To tal Cost Element eauvalent "unts( Cosh Ca) $al.02 $2,3u3000 $6¥B,20 l26000 30u,420 material 30.42 $302, 8uo $3U61,880 u000 $44opo Conversion costs -(loox$2102)+Cloco x304 X Cost of goods transfered cut- $5246,880 cost of ending inventury 2.400 x 21.02)+C t2000x 30.y2) 869, S20