he Neptune Corporation uses a process cost system and the weighted average metho
ID: 2549230 • Letter: H
Question
he 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:
Explanation / Answer
Units transferred=(2300+4000-3200)=3100 Equivalent units=3100+(3200*30%)= 4060 Cost per equivalent unit=(120270+304000)/4060= $104.5 Amount of cost transferred from work in process-Dept. A to work in process-Dept. B=3100*104.5= $323950
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