Question
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
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 (20% complete) 2,000
Plus: Units started 34,000
Units to account for 36,000
Less: Ending Work in Process (70% complete) 4,000
Units completed 32,000
The following costs are available for March for the Forming Department:
Material Conversion Cost Total Cost
Beginning Work in Process $ 11,800 $ 22,500 $ 34,300
Current cost 65,600 64,500 130,100
Total cost $77,400 $87,000 $164,400
The equivalent cost per unit was $2.15 for materials and $2.50 for conversion costs. How much is the total cost of the inventory transferred out during the period?
a.
$68,800
b.
$164,400
c.
$148,800
d.
$80,000
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