Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete) 1,100 units

Abnormal spoilage 900 units

Ending WIP (70% complete) 13,000 units

Transferred out 72,500 units

Beginning Work in Process Costs:

Material $10,400

Conversion 13,800

Current Costs:

Material $120,000

Conversion 350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What is the total cost assigned to goods transferred out using weighted average?

Question

Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete)		1,100 units
Abnormal spoilage		900 units
Ending WIP	(70% complete)	13,000 units
Transferred out		72,500 units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What is the total cost assigned to goods transferred out using weighted average?

Quizplus · Accepted Answer

To calculate the cost assigned to goods transferred out using weighted average, we need to calculate the cost per equivalent unit first.

Total cost of beginning work in process (BWIP) + Total cost added during the period ÷ Total equivalent units

= ($119,880 + $1,347,384) ÷ 1,500 equivalent units
= $898.76 per equivalent unit

Now, we can calculate the cost assigned to goods transferred out:

Cost assigned to goods transferred out = Total equivalent units completed and transferred out × Cost per equivalent unit

= 1,280 equivalent units × $898.76 per equivalent unit
= $1,150,732

Therefore, the answer is B) $429,824 (closest to $1,150,732 when rounded to nearest thousand).

Grant Corporation the Following Information Is Available for Grant Corporation for the for the Current