The Matsui Lubricants plant uses the weighted-average method to account for its

Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Quantity information is obtained from the manufacturing records and includes the following:

3.

value:
2.50 points

Required information

Compute the cost of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.)

Beginning WIP inventory Direct materials $ 970 Conversion costs 347 Current period costs Direct materials 14,330 Conversion costs 6,997

Explanation / Answer

Direct materials Conversion Units completed and transferred 3800 3800 Ending inventory 700 280 Equivalent units 4500 4080 Direct materials Conversion Total costs 15300 7344 Equivalent units 4500 4080 Cost per Equivalent unit 3.4 1.8 3 Cost of goods transferred out = 3800*(3.4+1.8)= 19760 Ending inventory = (700*3.4)+(280*1.8)= 2884

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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