Weighty Steel processes a single type of steel. For the current period the following information is given:
All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory was 30% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period?

Question

Weighty Steel processes a single type of steel. For the current period the following information is given:
 All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory was 30% completed for conversion purposes.
Weighty uses the weighted-average costing method.
What is the total cost assigned to the units completed and transferred this period?

Quizplus · Accepted Answer

EU (materials) = 20,500 + (2,500 × 100%) = 23,000.
($4,500 + $32,000)/23,000 = $1.59 per unit for material
EU (conversion) = 20,500 + (2,500 × 30%) = 21,250.
($5,400 + $78,200)/21,250 = $3.93 per unit for conversion.
Total cost per unit = $1.59 + $3.93 = $5.52
Cost of transferred units = 20,500 × $5.52 = $113,160

Weighty Steel Processes a Single Type of Steel