Use the following information for the next 10 questions.
Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally:
-Using the weighted average method, the cost of the units transferred out was
A) $53,570
B) $44,710
C) $52,261
D) $66,219

Question

Use the following information for the next 10 questions.
Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: 
-Using the weighted average method, the cost of the units transferred out was
A) $53,570 
B) $44,710 
C) $52,261 
D) $66,219

Quizplus · Accepted Answer

The weighted average method assigns the total cost of production to the units produced during the period. The cost of the units transferred out is calculated by multiplying the weighted average cost per unit by the number of units transferred out. In this case, the weighted average cost per unit is $53,570 / 1,000 units = $53.57. The cost of the units transferred out is $53.57 * 1,000 units = $53,570.

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