Ferdinand T. Corporation uses the weighted-average method in its process-costing system. Operating data for the first processing department for March appear below for the physical flow of units, and for direct materials (DM) and conversion costs (CC). Units % of completion: DM % of completion: CC Beginning WIP inventory 1,820 60% 50% Started into production during September: 22,000 Ending WIP inventory 3,700 90% 70% DM CC Beginning WIP inventory $6552 $5096 Cost added during March $142058 $70231 Q: Determine the cost of the units transferred out to the next department.

The cost of the units transferred out to the next department: DM =127,507, CC= $66,736

Explanation:

                                                    DM        CC

Units transferred out                20,120      20,120

(1,820 + 22,000 - 3,700)

Ending WIP inventory

3700 x 90%                                3,330

3700 x 70%                                        2,590

Equivalent units                          23,450     22,710

                                                     DM                  CC

Beginning WIP inventory           $6,552          $5,096  

Cost added                                 $142,058       $70,231

Total costs                                  $148,610     $75,327

Equivalent units                            23,450           22,710

Cost per Equivalent unit         6.34                3.32

(Total costs/Equivalent units)

                                                          DM                   CC            Total

Units transferred out                     20,120               20,120

X Cost per Equivalent unit              6.34                   3.32  

Cost of Units transferred out         $127,507          $66,736     $194,243

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