Matrix Inc. calculates cost for an equivalent unit of production using weighted average method . Data for July: Work in process inventory, July 1 (36,000 units) Direct materials (100 % completed)$122,400 Conversion (50 % completed) 76,800 Balance in work in process inventory, July 1$199,200 Units started during July 90,000 Units completed and transferred 102,000 Work in process inventory, July 31 24,000 Direct materials (100% completed) Conversion (50% completed) Cost incurred during July: Direct materials$180,000 Conversion costs 288,000 The cost of goods completed and transferred out under the weighted-average method is calculated to be: A. $96,000 B. $476,400 C. $571,200 D. $484,000

Matrix Inc.

The cost of goods completed and transferred out under the weighted-average method is calculated to be:

C. $571,200

Explanation:

a) Data and Calculations:

Data for July:

Work in process inventory, July 1 (36,000 units)

Direct materials (100 % completed)                 $122,400

Conversion (50 % completed)                             76,800

Balance in work in process inventory, July 1  $199,200

Units started during July                 90,000

Units completed and transferred  102,000

Work in process inventory, July 31 24,000

Direct materials (100% completed)

Conversion (50% completed)

Cost incurred during July:

Direct materials$180,000

Conversion costs 288,000

Physical flow:

Work in process inventory, July 1 (36,000 units)

Units started during July                 90,000

Units completed and transferred  102,000

Work in process inventory, July 31 24,000

                                                       Units  Direct materials    Conversion

Equivalent units of production:

Units completed and transferred 102,000     102,000           102,000

Ending work in process                  24,000      24,000 (100%)  12,000 (50%)

Total equivalent units                                      126,000            114,000

Cost of production:

                                                  Direct materials    Conversion   Total

Beginning work in process           $122,400             $76,800    $199,200

Costs incurred during July              180,000             288,000     468,000

Total production costs                 $302,400           $364,800   $667,200

Cost per equivalent unit:

                                                  Direct materials    Conversion

Total production costs                 $302,400           $364,800  

Total equivalent units                     126,000               114,000

Cost per equivalent unit                $2.40                  $3.20

Cost assigned to:                         Direct materials    Conversion   Total

Completed and transferred out     $244,800            $326,400  $571,200

Ending work in process                      57,600                 38,400      96,000

Total costs assigned                      $302,400            $364,800  $667,200

answer; coefficient of correlation;