Trapp Corporation uses the weighted-average method in its process costing system

Question

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 6,000 units that were 60% complete with respect to materials and 50% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $18,000. During the period, 9,500 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.9 for material and $3.7 for conversion costs. The cost of units transferred out during the month was:

Explanation / Answer

In the weighted average method of process costing, the cost are averaged out and evenly applied to both units transferred out and units in closing work in process.

Units transferred out is 9500 units .The cost per equivalent unit for the period was 2.9 for material and 3.7 for conversion cost. Total equivalent cost for both are 2.9+3.7= 6.6 per unit.

Cost of units transferred out = 6.6*9500

= $62,700

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