Figure 6-15
The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.

-Refer to Figure 6-15. What is the cost assigned to the units completed and transferred to finishing?

Question

Figure 6-15
The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
 
-Refer to Figure 6-15. What is the cost assigned to the units completed and transferred to finishing?

Quizplus · Accepted Answer

To determine the cost assigned to the units completed and transferred to finishing, we need to calculate the equivalent units and the cost per equivalent unit.

Equivalent units:
Materials: 30,000
Conversion: 18,000
Total: 48,000

Cost per equivalent unit:
Materials: $15
Conversion: $12
Total: $27

Cost assigned to units completed and transferred:
Materials: 48,000 x 100% x $15 = $720,000
Conversion: 48,000 x 100% x $12 = $576,000
Total: $720,000 + $576,000 = $1,296,000
Less: cost of ending work in process (6,000 x $27) = $162,000
Cost assigned to units completed and transferred = $1,296,000 - $162,000 = $1,134,000
Cost per unit completed and transferred: $1,134,000 / 1,350 = $843.75
Therefore, the answer is A) $843,750.

Figure 6-15 The Davidson Company Uses a Weighted Average Process Costing System