Vallin Manufacturing Corporationâs beginning work in process inventory consisted of 9,500 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $51,000. During the month, 55,000 units were transferred out. The equivalent unit cost was computed to be $4.00 for materials and $4.50 for conversion costs under the weighted-average method.
1. Given this information, the total cost of the units completed and transferred out was _________.

Respuesta :

Answer:

$467,500

Explanation:

Given that,

Total cost in the beginning inventory = $51,000

Units transferred out = 55,000 units

Equivalent unit cost for materials = $4

Equivalent unit cost for conversion = $4.50

Total cost of the units completed and transferred out:

= Units transferred out × (Equivalent unit cost for materials + Equivalent unit cost for conversion)

= 55,000 units × ($4 + $4.50)

= 55,000 units × $8.50

= $467,500