Burton Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 200 units in process, started 1,500 units, and had 150 units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 20% complete with respect to conversion costs. The department incurred the following costs: How many units were completed and transferred out? a. 150 units b. 1,500 units c. 1,350 units d. 1,550 units
Burton Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 200 units in process, started 1,500 units, and had 150 units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 20% complete with respect to conversion costs. The department incurred the following costs: How many units were completed and transferred out? a. 150 units b. 1,500 units c. 1,350 units d. 1,550 units
Solution Summary: The author explains that the number of units completed and transferred out is 1,550 units. The other options of a, b, and c are incorrect.
Burton Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 200 units in process, started 1,500 units, and had 150 units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 20% complete with respect to conversion costs. The department incurred the following costs:
How many units were completed and transferred out?
a. 150 units
b. 1,500 units
c. 1,350 units
d. 1,550 units
Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
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