Question
The company starts the week with zero units in finished goods inventory, and one unit in work-in-process. The one unit in WIP is 60% complete
The company starts the week with zero units in finished goods inventory, and one unit in work-in-process. The one unit in WIP is 60% complete with respect to both materials and conversion costs, and it is carried at a cost of $150. During the week, the company completes this one unit, starts and completes ten more units, and starts production of yet another unit, but this last unit is only 30% complete with respect to both materials and conversion costs at the end of the week. The company incurred $2,840 in materials and conversion costs during the week (i.e., this was the cost transferred into WIP during the week).
Required: What is the cost of each unit transferred to finished goods inventory during the week, using the weighted-average method?
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