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

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.

Quizplus · Accepted Answer

The total cost transferred from Work in Process-Dept. A to Work in Process-Dept. B is $323,950. This is calculated as follows:Beginning Work in Process-Dept. A + Total Manufacturing Costs - Ending Work in Process-Dept. A = Cost Transferred to Work in Process-Dept. B$120,270 + $304,000 - ($3,200 units x 30% complete x $100 per unit) = $323,950

The Neptune Corporation Uses a Process Cost System and the Weighted