The sewing process used by TradeMark Inc. began the year with an inventory of $3,820. Using the Weighted-Average method, they calculated their equivalent units of production for this calendar year to be:
TradeMark has calculated their cost per equivalent unit as follows: Direct Material $84 and Conversion Costs $43. How much cost should TradeMark assign to the units completed and removed from WIP inventory in the current year using the Weighted-Average method?

Question

The sewing process used by TradeMark Inc. began the year with an inventory of $3,820. Using the Weighted-Average method, they calculated their equivalent units of production for this calendar year to be:
 TradeMark has calculated their cost per equivalent unit as follows: Direct Material $84 and Conversion Costs $43. How much cost should TradeMark assign to the units completed and removed from WIP inventory in the current year using the Weighted-Average method?

Quizplus · Accepted Answer

This question requires that assignment of costs only to the units completed and removed from WIP inventory during the current year, so that means beginning and ending WIP inventory will not be factored in. Direct Materials, 865 × $84 = $72,660; Conversion Costs, 865 × $43 = $37,195; so Total Costs = $72,660 + $37,195 = $109,855.

The Sewing Process Used by TradeMark Inc