Question

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.

Work-in-process Inventory Sept. 1		41,000	units
Conversion complete		70	%
Work-in-process inventory Sept. 30		23,000	units
Conversion complete		50	%
Units started into production in Sept.		105,000
Units completed and transferred out		?	units
Costs
Work-in-process inventory Sept.1
Material P	$	176,000
Material Q		161,000
Conversion		139,000
Costs added in September
Material P	$	264,000
Material Q		242,000
Conversion		519,500

Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.

The cost of goods completed and transferred out under the weighted-average method is calculated to be: (Do not round your intermediate calculations.)

rev: 10_30_2019_QC_CS-188258

Multiple Choice

• $1,286,796.

• $1,210,796.

• $1,312,396.

• $1,241,796.

• $1,501,500.

Answer 1

Work in Process, Beginning	41000
Add: Units started during Sept.	105000
Less: Ending Work in process inventory	-23000
Units completed and transferred out	123000
	Material P	Material Q	Conversion
Units completed and transferred out	123000	123000	123000
Work in process, ending	23000	23000	11500
Equivalent units of production	146000	146000	134500
	Material P	Material Q	Conversion
Work in process, September 1	176000	161000	139000
Cost added during September	264000	242000	519500
Total costs	440000	403000	658500
Divide by Equivalent units of production	146000	146000	134500
Cost per Equivalent unit	3.014	2.760	4.896
	Mixing	Materials	Conversion	Total
Units completed and transferred out	123000	123000	123000
X Cost per Equivalent unit	3.014	2.760	4.896
Cost of Units completed and transferred out	370685	339514	602197	1312396
Option C $1,312,396 is correct