Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories $ =750 $ units, $ 60 \% $ complete
Direct materials cost $ =\$ 5,925 $
Conversion costs $ =\$ 4,095 $

During July: $ \quad 15,000 $ units started
Direct materials added $ =\$ 150,000 $
Conversion costs added $ =\$ 83,520 $

On July 31: Ending inventories $ =1,500 $ units, $ 40 \% $ complete Using the weighted average method, the cost of the goods completed and transferred out was:

Question

Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories $ =750 $ units, $ 60 \% $ complete
Direct materials cost $ =\$ 5,925 $
Conversion costs $ =\$ 4,095 $

During July: $ \quad 15,000 $ units started
Direct materials added $ =\$ 150,000 $
Conversion costs added $ =\$ 83,520 $

On July 31: Ending inventories $ =1,500 $ units, $ 40 \% $ complete Using the weighted average method, the cost of the goods completed and transferred out was:

Quizplus · Accepted Answer

The weighted average method assigns costs to units based on the average cost of all units in the process during the period. The average cost is calculated by dividing the total cost of all units in the process by the total number of units in the process. In this case, the total cost of all units in the process is $225,150 (direct materials cost + conversion costs + beginning inventory cost). The total number of units in the process is 16,500 units (beginning inventory + units started - ending inventory). Therefore, the average cost per unit is $225,150 / 16,500 units = $13.64. The cost of the goods completed and transferred out is $13.64 x 15,000 units = $204,600.

Hendrix, Inc =750 =750 =750 Units 60% 60 \% 60% Complete Direct Materials Cost

Hendrix, Inc $=750$ Units $60 \%$ Complete
Direct Materials Cost