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Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities:
-Using the weighted average method, the cost of the goods completed and transferred out was
A) $225,150
B) $225,060
C) $213,300
D) $213,000

Question

Use the following information for the next 8 questions.
Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: 
-Using the weighted average method, the cost of the goods completed and transferred out was
A) $225,150 
B) $225,060 
C) $213,300 
D) $213,000

Quizplus · Accepted Answer

The weighted average method assigns the total manufacturing costs of a period to the units completed and transferred out of production. The cost per equivalent unit is calculated by dividing the total manufacturing costs by the total equivalent units of production. The total equivalent units of production are calculated by adding the equivalent units of production for the beginning work in process inventory, the units started and completed during the period, and the equivalent units of production for the ending work in process inventory. The cost of the goods completed and transferred out is calculated by multiplying the cost per equivalent unit by the number of units completed and transferred out.

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