Problem
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory
Direct materials $ 970
Conversion costs 512
Current period costs
Direct materials 22,295
Conversion costs 13,437
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory 650 units (60% complete as to materials,
54% complete as to conversion)
Current period units started 5,600 units
Ending inventory 1,800 units (40% complete as to materials,
20% complete as to conversion)
Compute the cost of goods transferred out and the ending inventory using the weighted-average method.