Question

The Kim Company is a furniture manufacturer with two departments: molding and finishing. The company uses the weighted-average method of process costing. In August, the following data were recorded for the finishing department:

Units of beginning work in process inventory	12,500
Units transfered in during August	87,500
Units completed	62,500
Transferred-in costs in beginning WIP	$103,625
Cost of units transferred in during current period	$809,375

There were no spoiled or lost units. The firm had completed 20% of the work for the units in ending WIP.

Required: Compute the transferred-in costs contained in the cost of goods manufactured in August.

I answered 170,000 and it's wrong

Answer 1

Beginning work in progress Add: Units started during the March Less: Total units completed during the period Ending work in progress Units 12,500 87,500 62,500 37,500 S Beginning cost Transferred in Total cost Units 103,625 809,375 913,000 S $ Total Units Total units completed during the period Ending work in progress Total Percentage Equivalent of completion Units 62,500 100% 62,500 D 37,500 20% 7.500 70,000 $ $ Total cost EquivalentUnits Equivalent Cost per unit Cost of Units started and completed during March 913,000 A 70,000 B 13.04 C= A/B 815,179 E=D*C $ S