#118

Pilot Protectors manufactures pocket knives in three processes and uses the weighted average method of process costing system. In the Forming Department, all materials are added at the start of production. The following unit information is available for March production for the Forming Department:

Beginning Work in Process (50% complete) 8,000

Plus: Units started 52,000

Units to account for 60,000

Less: Ending Work in Process (75% complete) 5,000

Units completed 55,000

The following costs are available for March for the Forming Department:

Material Conversion Cost Total Cost

Beginning Work in Process $ 56,000 $ 10,000 $ 66,000

Current cost 424,000 166,250 590,250

Total cost $480,000 $176,250 $656,250

The equivalent cost per unit was $8.00 for materials and $3.00 for conversion costs.How much is the total cost of the inventory transferred out during the period?

a.

$656,250

b.

$440,000

c.

$165,000

d.

$605,000