Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October: All materials at Bettie are added at the beginning of the production process.What total amount of cost should be assigned to the units completed and transferred out during October?

A) $642,000
B) $677,500
C) $690,000
D) $691,900

Question

Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October:

All materials at Bettie are added at the beginning of the production process.What total amount of cost should be assigned to the units completed and transferred out during October?

A) $642,000
B) $677,500
C) $690,000
D) $691,900

Ivory Coachman · Accepted Answer

Final Answer : C, Explanation :  The total cost assigned to the units completed and transferred out is the total cost incurred during the period, minus the cost of ending work in process inventory.Total cost incurred during October:Beginning Work in Process Inventory = $81,000Direct materials added in October = $411,000Direct labor incurred in October = $126,000Manufacturing overhead incurred in October = $72,000Total cost incurred during October = $690,000Cost of ending work in process inventory:Materials cost = (15,000 x $28) - (5,000 x $28) = $280,000Conversion cost = (15,000 x $22) - (2,000 x $22) = $308,000Total cost of ending work in process inventory = $588,000Therefore, the total amount of cost assigned to the units completed and transferred out during October is:$690,000 - $588,000 = $102,000Since 15,000 units were completed and transferred out during October, the cost per unit is:$102,000 ÷ 15,000 = $6.80Thus, the correct choice is C, $690,000.

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