Valley Manufacturing Corporation's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:
A)$255,000
B)$270,000
C)$240,000
D)$285,000

Question

Quizplus · Accepted Answer

The total cost of units completed and transferred out is calculated by multiplying the equivalent unit costs by the number of units transferred out. For materials: 50,000 units x $2.00 = $100,000. For conversion costs: 50,000 units x $3.70 = $185,000. Adding these gives $285,000.

Valley Manufacturing Corporation's Beginning Work in Process Inventory Consisted of 10,000