Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

DriveTrain, Inc. instituted a new process in October 2020. During October, 13,800 units were started in Department A. Of the units started, 8,950 were transferred to Department B, and 4,850 remained in Work-in-Process at October 31, 2020. The Work-in-Process at October 31, 2020, was 100% complete as to material costs and 50% complete as to conversion costs. Material costs of $37,260 and conversion costs of $45,500 were charged to Department A in October. What were the total costs transferred to Department B assuming Department A uses weighted-average process costing

Sagot :

Zviko

Answer:

$59,965

Explanation:

Equivalent Units

Materials = 8,950 x 100 % + 4,850 x 100 % = 13,800 units

Conversion Costs = 8,950 x 100 % + 4,850 x 50 % = 11,375 units

Total Costs

Materials = $37,260

Conversion Costs = $45,500

Cost per Equivalent unit

Materials = $37,260 / 13,800 units = $2.70

Conversion Costs = $45,500/ 11,375 units  = $4.00

Total Unit Cost = $2.70 + $4.00 = $6.70

Total costs transferred to Department B

Total costs = 8,950 x $6.70 = $59,965

Therefore, the total costs transferred to Department B is $59,965

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.