Matrix Inc. calculates cost for an equivalent unit production using both the wei
ID: 2407767 • Letter: M
Question
Matrix Inc. calculates cost for an equivalent unit production using both the weighted average anf the FIFO methods.
The cost of goods completed and the transferred out under the weighted average method is calulated to be?
Data for July Work-in-process inventory, July 1 (30,900 units) Direct materials (100% completed) $116,420 Conversion (47% completed) $72,120 Balance in work in process inventory, July 1 $188,540 Units started during July 88,000 Units completed and transferred 96,000 Work-in-process inventory, July 31 Direct materials (100% completed) 22,900 Conversion (47% completed) Cost incurred during July Direct materials $171,000 Conversion costs $273,400Explanation / Answer
Materials Conversion Units completed and transferred 96000 96000 Work-in-process inventory, July 31 22900 10763 Equivalent units 118900 106763 Total costs 287420 345520 Cost per Equivalent unit 2.41733 3.23633 Cost of goods completed and the transferred out = 96000*(2.41733+3.23633)= $542751 Option E is correct