Mountainside Industries manufactures specialized plastic boxes in two processes:

Question

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:

The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.

Rounded to two decimal places, Mountainside's costs transferred out using weighted average would be

Costs Units Trans.-in Materials Conv. Work in process, July 1 30 $1,590 $       0 $   513 Transferred in during July ? Completed during July 105 Work in process, July 31 15 Costs added during July $4,410 $1,050 $1,767

Explanation / Answer

Quantity Schedule

Calculate the equivalent units

Conversion

cost

Calculate the cost per equivalent unit

Cost of units transferred out = 105 units x $80.78 = $8481.82

Opening Work-In-Process (WIP) 30 Completed during July 105 Closing Work-In-Process (WIP) 15 Transferred In (105+15-30) 90

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.