Rathburn, Inc. is a service firm that uses process costing. The firm worked on a total...

Rathburn, Inc. is a service firm that uses process costing. The firm worked on a total of 1,200 cases this month, 900 of which were completed during the period. The remaining cases were 45% complete. The firm incurred $274,650 in direct labor and manufacturing overhead costs during the period, and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method, what was the total cost of cases completed during the period?

Expert Solution

		Equivalent units
Flow of production


WIP ending percentage completion %		45%
WIP ending units		135
completed and transferred out during the period		900
Accounted for
Equivalent units of work done to date		1,035

Ref	Particulars	Total costs

	Work in process, beginning	4,800
	Total costs added during month	274,650

A	Total costs to account for	279,450

B	Divided by Total EUP	1,035
C=B/A	Weighted average cost per equivalent unit	270.00

	Costs accounted for as follows:
	completed and transferred out	243,000
		[270*900]

	WIP ending	36,450
		[270*135]

	Total costs accounted for	279,450

ekkarill92 answered 1 year ago

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