Assume a company uses the weight-average method in its process costing. Its Work in Process T-account for the Refining Department for August is:
Work in Process: Refining Department
August 1 balance 62,000Completed and transferred to Finished Goods?
Direct labor 72,000
August 31 balance?
The August 1 work in process inventory consisted of 6,000 units with $35,000 in materials cost and $27,000 in conversion cost. The August 1 work in process inventory was 100% complete with respect to materials and 40% complete with respect to conversion. During August 48,000 units were started into production. The August 31 work in process inventory consisted of 8,000 units that were 100% with respect to materials and 60% complete with respect to conversion.
The materials cost included in the amount transferred from the Refining Department to Finished Goods is closest to: