Sarver Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. The Fitting Department's cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
A)$482,287.20
B)$502,640.00
C)$523,240.00
D)$561,144.00

Question

Sarver Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March.  The Fitting Department's cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?
A)$482,287.20 
B)$502,640.00 
C)$523,240.00 
D)$561,144.00

Quizplus · Accepted Answer

The conversion cost assigned to units transferred out of the Fitting Department during March can be calculated using the following formula:

Conversion cost assigned to units transferred out = Cost per equivalent unit for conversion cost x Equivalent units of conversion cost for units transferred out

From the given data, the equivalent units of conversion cost for units transferred out is 63,400.

Therefore, the conversion cost assigned to units transferred out = $8.24 x 63,400 = $523,240.00

Hence, the best choice is C.

Sarver Corporation Uses the Weighted-Average Method in Its Process Costing