Question

C Required information The Foundational 15 (L04-1, L04-2, L04-3, L04-4, LO4-5] The information applies to the questions displayed below Copack Company manufactures one product that goes through one processing department called Mixing Allow mana se introduced at the start of work in the Mixing Department. The company uses the weighted average method of process costing It Work in Process T-account for the Mixing Department for June follows all forthcoming questions pertanto June 28. Completed and transferred to Finished Goods The June I work in process inventory consisted of 5.000 units with $16.000 in materials cost and $12.000 in conversion cost The June 1 work in process inventory was 100 complete with respect to materials and 50% complete with respect to conversion. During June 37500 units were started into production The June 30 work in process iventory consisted of 8000 units that were 100% complete with respect to materials and 40% complete with respect to conversion Foundational 4-12 12. What is the cost of f ered to the goods Round your intermediate

Answer 1

Solution:

Nos of units completed and transferred out = 5000 + 37500 - 8000 = 34500 units

Total cost of materials to account for = $16,000 + $120,000 = $136,000

Equivalent units of material = 34500 + 8000 = 42500

Cost per equivalent unit of material = $136,000 / 42500 = $3.20 per unit

Cost of materials transferred to finished goods = 34500 * $3.20 = $110,400