Buckman company uses the weighted average method for process costing. the cost per equivalent unit for direct materials is $5.00. the cost per equivalent unit for conversion costs is $3.00. the company completed and transferred out is 40,000 units. the equivalent units of ending work-in-process for materials is an additional 3,000 units, for conversion is an additional 2,000 units. what is the total cost accounting for direct materials?

The total cost accounting for direct materials is $215,000

Explanation:

The computation of the total cost accounted for the direct material is shown below:

= (cost per equivalent unit for direct materials × transferred units) + (ending work in progress units × cost per equivalent unit for direct materials)

= ($5 × 40,000) + (3,000 ×$5)

= $200,000 + $15,000

= $215,000

The conversion cost units and its cost per equivalent unit are not relevant. Hence, it is ignored in the computation part.  

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