Question

Talamoto Co. manufactures a single product that goes through two processes Mixing Department for September. mixing and cooking. The following data pertains to the 28,000 units 70% 16,000 units 50% 72,000 ? units Work-in-process Inventory Sept. 1 Conversion complete Work-in-process inventory Sept. 30 Conversion complete Units started into production in Sept. Units completed and transferred out Costs Work-in-process inventory Sept. 1 Material P Material e Conversion Costs added in September Material P Material Q Conversion $120,000 110,000 165,000 $180,000 165,000 354,800 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:

Answer 1

Unit transferred out = 28000+72000-16000 = 84000

Equivalent unit of material P = 84000+16000 = 100000

Equivalent unit of material Q = 100000

Equivalent unit of conversion = 84000+(16000*50%) = 92000

Cost per equivalent unit of material P = (120000+180000)/100000 = 3

Cost per equivalent unit of material q = (110000+165000)/100000 = 2.75

Cost per equivalent unit of conversion = (165000+354800)/92000 = 5.65

Cost of unit transferred out = (3+2.75+5.65)*84000 = 957600

So answer is b) $957600