Figure 6-14 The following information is available for Department A for the month of January:
Materials are added at the beginning of the process.Round unit costs to two decimal places.
-
Refer to Figure 6-14.The cost of goods transferred out using the weighted average method is

Question

Figure 6-14 The following information is available for Department A for the month of January:
 Materials are added at the beginning of the process.Round unit costs to two decimal places.
-
Refer to Figure 6-14.The cost of goods transferred out using the weighted average method is

Quizplus · Accepted Answer

Using the weighted average method, the cost per equivalent unit for materials is calculated as (Beginning inventory cost + Additional costs during the period) / Equivalent units of production. 
For materials:
= ($122,400 + $95,400) / (6,000 + 8,000)
= $217,800 / 14,000
= $15.56 per equivalent unit
The cost of goods transferred out = (Equivalent units of production × Cost per equivalent unit)
= (10,000 × $15.56)
= $155,600
Adding the cost of beginning inventory of $117,640, the total cost of goods transferred out is $273,240. Therefore, the correct answer is C.

Figure 6-14 the Following Information Is Available for Department a for the Month