The Davidson Company uses a weighted average process costing system. The following information was reported for...

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Accounting

The Davidson Company uses a weighted average process costingsystem. The following information was reported for the AssemblyProcess for January. Materials are added at the beginning of theprocess and are 100%.
Units: units % complete for conversions
work in process, 1/1 60,000 15%
started 105,000
work in process, 1/31 40,000 20%
Costs:
Materials Conversion
beginning work in process $ 16,500 $ 33,250
current costs $643,500 $332,500

What is the cost assigned to the units completed and transferred tofinishing?
a.$976,000
b.$843,750
c.$708,750
d.$777,500
e.None of these choices are correct.

Answer & Explanation Solved by verified expert

3.8 Ratings (530 Votes)

b843750 Working Step1Calculation of physical units completed and transferred out Beginning Units in process 60000 Units started during the period 105000 Total units to be accounted for 165000 Units in See Answer

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Units:	units	% complete for conversions
work in process, 1/1	60,000	15%
started	105,000
work in process, 1/31	40,000	20%

Costs:
	Materials	Conversion
beginning work in process	$ 16,500	$ 33,250
current costs	$643,500	$332,500