Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:

During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

- By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Eclypso's cost of goods transferred to the molding department (Note: Round answer to two decimal places.) during October would be:
A) $310,347.
B) $261,050.
C) $465,792.
D) $294,000.

Question

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
 During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Eclypso's cost of goods transferred to the molding department (Note: Round answer to two decimal places.) during October would be:
A) $310,347. 
B) $261,050. 
C) $465,792. 
D) $294,000.

Quizplus · Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 
 11ea8a4c_48d3_5b22_a0e6_a35245d42873_TB5550_00 11ea8a4c_48d3_5b23_a0e6_5d251fc6db37_TB5550_00  
 
 *(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
**(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
 
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13
Cost of goods transferred to the molding department = Units completed and transferred to the molding department × Cost per equivalent unit = 38,400 units × $12.13 = $465,792