Craft Company uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as P10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were P2.00 for material and P3.00 for conversion costs. The cost of units transferred out during the month was:

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Chapter1: Financial Statements And Business Decisions
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Craft Company uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as P10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were P2.00 for material and P3.00 for conversion costs. The cost of units transferred out during the month was:

 

A. 45,000

B. 45,400

C. 39,600

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