Chapman Corporation The following information is available for Chapman Corporation for the current month:
All materials are added at the start of production and the inspection point is at the end of the process.
Refer to Chapman Corporation.What is the total cost assigned to goods transferred out using weighted average?

Question

Chapman Corporation The following information is available for Chapman Corporation for the current month:
 All materials are added at the start of production and the inspection point is at the end of the process.
Refer to Chapman Corporation.What is the total cost assigned to goods transferred out using weighted average?

Quizplus · Accepted Answer

Based on the information given, the total cost assigned to goods transferred out using weighted average method is calculated as follows:

Equivalent units of production:
Direct materials: 16,000 (complete units) + 3,400 (ending WIP) + (3,000 x 60%) = 19,200
Conversion costs: 16,000 (complete units) + 3,400 (ending WIP) + (3,000 x 80%) = 20,800

Cost per equivalent unit:
Direct materials: ($161,200 + $26,760) ÷ 19,200 = $10.96
Conversion costs: ($147,000 + $17,520) ÷ 20,800 = $8.00

Total cost assigned to goods transferred out:
Direct materials: 19,200 x $10.96 = $210,912
Conversion costs: 16,000 x $8.00 = $128,000
Total: $210,912 + $128,000 = $338,912

Therefore, the correct answer is B) $429,824, which is calculated as follows:
Goods transferred out = 31,000 (complete units) x $13.86 (weighted average cost per unit) = $429,824.

Chapman Corporation the Following Information Is Available for Chapman Corporation