Wilco Inc. uses a process costing system with two cost categories (Materials and Conversion). Wilco completed and transferred out 45,000 units during the most recent period. Wilco also computed that they had 50,000 equivalent units of materials and 47,500 equivalent units of conversion. If the material cost per equivalent unit was $2.50 and the conversion cost per equivalent unit is $3.00, what is the cost of goods completed and transferred out?

Wilco Inc. uses a process costing system with two cost categories (Materials and Conversion). Wilco completed and transferred out 45,000 units during the most recent period. Wilco also computed that they had 50,000 equivalent units of materials and 47,500 equivalent units of conversion. If the material cost per equivalent unit was $2.50 and the conversion cost per equivalent unit is $3.00, what is the cost of goods completed and transferred out?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Wilco Inc. uses a process costing system with two cost categories (Materials
and Conversion). Wilco completed and transferred out 45,000 units during
the most recent period. Wilco also computed that they had 50,000
equivalent units of materials and 47,500 equivalent units of conversion. If
the material cost per equivalent unit was $2.50 and the conversion cost per
equivalent unit is $3.00, what is the cost of goods completed and
transferred out?

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