Edwards Company produces calendars in a one-department process. The following information is available:
The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-The total cost of units completed and transferred is
A) $45,120.
B) $244,200.
C) $204,000.
D) $228,000.

Question

Edwards Company produces calendars in a one-department process. The following information is available:
  The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-The total cost of units completed and transferred is
A) $45,120. 
B) $244,200. 
C) $204,000. 
D) $228,000.

Quizplus · Accepted Answer

We need to use the weighted-average method to calculate the cost per equivalent unit (EU). 
Total cost = $262,800
Total EU = 30,000 (20,000 completed + 10,000 in process at 60% completion)
Cost per EU = Total cost / Total EU
= $262,800 / 30,000
= $8.76

To calculate the cost of units still in process, we need to multiply the EU by the percentage of completion.
Cost of units in process = EU in process * % completion * Cost per EU
= 10,000 * 60% * $8.76
= $5,256

So, the total cost of units completed and transferred is:
= Total cost - Cost of units in process
= $262,800 - $5,256
= $257,544

The answer choice that matches this value is C, which is $204,000.

Edwards Company Produces Calendars in a One-Department Process