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Compute Costs per Equivalent Unit: Weighted-Average Method
Pacific Ink had beginning work-in-process inventory of $372,480 on October 1. Of this amount, $152,460 was the cost of direct materials and $220,020 was the cost of conversion. The 48,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.During October, 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $1,171,800 for direct materials and $1,513,920 for conversion.
Evaluate the costs of goods transferred out and the ending inventory using the weighted-average method.
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