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AAD company is reviewing the behavior of its various activities. AAD is considering various costs under process costing system.. Direct materials are added at the
AAD company is reviewing the behavior of its various activities. AAD is considering various costs under process costing system.. Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout the process. The following data pertain to the month of May. Units Total Direct Conversion cost Material Work in process, May 1 - 60% complete 15,000 Units started during May 60,000 Units sold during May 7,000 Costs Work in process, May 1 $41,250 $16,500 $24,750 Costs incurred during May 234,630 72,000 162,630 Total $275,880 $88,500 $187,380 Using the weighted average method of processing costing, calculate the cost of goods completed and transferred during May. a. Cannot be ascertained with the information given b. $250,240 c. $258,400 d. $263,840 e. $275,880
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