The Neptune Corporation uses a process cost system and the weighted average method.The company started March with 2,300 units in work in process-Dept.A.During the month 4,000 units were started.At the end of the month there were 3,200 units in ending work in process-Dept.A inventory that were 30% complete.The beginning work in process balance was $120,270 and total manufacturing cost for the period was $304,000.Based on this information,the amount of cost transferred from work in process-Dept.A to work in process-Dept.B was:
A) $323,950.
B) $127,281.
C) $271,667.
D) $100,320.

Question

Quizplus · Accepted Answer

Units in beginning work in process + Units started = Units finished and transferred out + Units in ending inventory
2,300 + 4,000 = Units finished and transferred out + 3,200
Units finished and transferred out = 2,300 + 4,000 - 3,200 = 3,100
Weighted average method:
Equivalent units = Units finished and transferred out + (Ending inventory x Percentage complete
Equivalent units for the period = 3,100 units + (3,200 units x 0.30)= 4,060
Cost per equivalent unit = Total product costs in department ÷ Equivalent whole units
Cost per equivalent unit = ($120,270 + $304,000)÷ 4,060 Equivalent whole units = $104.50
Cost of units transferred = Units transferred x Cost per equivalent unit
Cost of units transferred = 3,100 units x $104.50 per unit = $323,950
323,950
Agree.Corrected.JMF
323,950
Agree.Corrected.JMF

The Neptune Corporation Uses a Process Cost System and the Weighted