Question

Matrix Inc. calculates cost for an equivalent unit of production using the weighted average method. Data for July: Work-in-process inventory, July 1 (38,000 units): Direct materials (91% completed) Conversion (52% completed) Balance in work in process inventory, July 1 Units started during July Units completed and transferred Work-in-process inventory, July 31: Direct materials (91% completed) Conversion (52% completed) Cost incurred during July: Direct materials Conversion costs $122,200 77,700 $199,900 89,000 101,300 25,700 $171,500 269,000 The cost of goods completed and transferred out under the weighted average method is calculated to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)

Answer 1

Cost of goods Completed & transffered Out is $544,994

Units to Account For: Completed and transferred out Units Ending WIP Units to Accounted For: Units 101,300 25,700 127,000 Equivalent Units of Production Particulars Whole Units Direct Material conversion 101,300 Units Completed & Transferred (100% Complete) Add. Ending WIP (Direct Material 91%, Conversion 52%) Equivalent Units of Production 101,300 25,700 127,000 101,300 23,387 124,687 13,364 114,664 Costs Beginning WIP Costs Incurred during july Total Costs (A) $199,900 $440,500 $640,400 $122,200 $171,500 $293,700 $77,700 $269,000 $346,700 Equivalent Units of Production (B) 124,687 114,664 Cost Per Equivalent Units of Production = A/B 2.36 3.02 Cost of goods Completed & transffered Out 101,300 units x (2.36 +3.02) = $544,994