Posted: July 26th, 2016

Cost of goods completed and transferred out of the Weaving Department.

How do I calculate Cost of the September 30 Work-in-process inventory in the Weaving department? I am providing all of the information I have.

Savannah Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of September.

Equivalent units of direct material (weighted-average method) 55,000
Equivalent units of conversion (weighted-average method) 45,000
Units completed and transferred out during September 42,000

The cost data for September are as follows:
Work in process, September 1
Direct material $ 105,240
Conversion 45,948
Costs incurred during September
Direct material $ 158,760
Conversion 237,552

There were 15,000 units in process in the Weaving Department on September 1 (100% complete as to direct material and 40% complete as to conversion).
Required:
Compute each of the following amounts using weighted-average process costing.

1. Cost of goods completed and transferred out of the Weaving Department.
2. Cost of the September 30 work-in-process inventory in the Weaving Department.