Coon Company uses the weightedaverage method in its process

Coon Company uses the? weighted-average method in its process costing system. The Packaging Department started the month with 260 units in? process, started 1,420 units, and had 140 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 30?% complete with respect to conversion costs. The department incurred the following? costs:

Beginning WIP

Added this month

Total

Direct Materials

$1,000

$3,100

$4,100

Conversion Costs

200

5,860

6,060

Total

$1,200

$8,960

$10,160

How many units were completed and transferred? out?

A. 1,540 units

B. 140 units

C. 1,280 units

D. 1,420 units

Solution

Calculate units completed and transferred out :

Units completed and transferred out = Beginning wip+Unit started-ending wip

= 260+1420-140

Units completed and transferred out = 1540 Units

SO answer is a) 1540 Units