Figure 6-19 Takon manufactures specialized plastic boxes in two processes: Molding and Packaging.In the Packaging Department, materials are added at the end of the process.The following data are given:
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
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Refer to Figure 6-19.Rounded to two decimal places, Takon's costs transferred out using weighted average would be

Question

Figure 6-19 Takon manufactures specialized plastic boxes in two processes: Molding and Packaging.In the Packaging Department, materials are added at the end of the process.The following data are given:
 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
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Refer to Figure 6-19.Rounded to two decimal places, Takon's costs transferred out using weighted average would be

Quizplus · Accepted Answer

To calculate the cost transferred out using weighted average, we need to calculate the equivalent units of production (EUP) and the total cost incurred.

EUP for Molding Department = 9,000 + 3,000 (60% of ending inventory) = 10,800
EUP for Packaging Department = 12,000 + 1,000 (70% of beginning inventory) + 4,000 (60% of ending inventory) = 15,400

Total cost incurred = $15,000 + $6,000 = $21,000

Cost per EUP = Total cost / Total EUP
= $21,000 / 15,400
= $1.36

Cost transferred out = Cost per EUP * EUP for Packaging Department
= $1.36 * 12,000
= $8,160 (rounded to the nearest dollar)

Therefore, the closest answer option is C, $8,400.

Figure 6-19 Takon Manufactures Specialized Plastic Boxes in Two Processes