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# Total cost of good transferred from work in process to finished goods

Violet Enterprises uses weighted average based process costing for inventory valuation purposes. At the beginning of the period there were 2,000 units in work in process (WIP) that were 30% complete. During the period 12,000 new units were started. Ending WIP was 3,000 units that were 40% complete. Direct materials are added at the beginning of the process, while conversion occurs evenly throughout the process. During this period 9,800 units were transferred to finished goods. Violet has one inspection point, which takes place when units are 80% complete. Normal spoilage is considered to be 2.0% of units started.

The beginning inventory for Violet equaled \$45,000 (\$20,000 for direct materials and the balance for direct labor and overhead). During the current period a total of \$135,000 was added (\$65,000 for direct materials and the balance for direct labor and overhead).

Based on this information what is the total cost of goods transferred from work in process to finished goods for this period? Round equivalent unit cost calculations to four decimal places.

a. \$105,096
b. \$112,296
c. \$137,343
d. \$140,324
e. \$152,254

#### Solution Summary

The total cost of good transferred from work in process to finished goods.

\$2.19