Saracha, Inc

Saracha, Inc. manufactures products that pass through two or more processes. The company uses the weighted average costing method to compute unit costs. During October, equivalent units were computed as follows:
Materials Conversion
Cost
Units completed 190,000 190,000
Units in ending Work-in-Process Inventory × Fraction complete:
Materials (33,000 × 100%) 33,000
Conversion (33,000 × 30%) 9,900
Equivalent units of output 223,000 199,900
The unit cost was computed as follows:
Materials $15.00
Conversion cost 13.00
Total cost per unit $28.00
Required:
A. Determine the cost of the goods transferred out.
B. Determine the cost of ending Work-in-Process Inventory.

Correct Answer:

Verified

A. Cost of goods transferred out = $28.0...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free