7) Lap Corporation uses the weighted-average method in its process costing system. The
beginning work in process inventory in a particular department consisted of 80,000 units, 100%
complete with respect to materials and 25% complete with respect to conversion costs. The total
dollor value of this inventory was $226,000. During the month, 150,000 units were transferred
out of the department. The costs per equivalent unit for the month were $2.00 for materials and
$3.50 for conversion costs. The cost of the units completed and transferred out of the department
was:
A) $681,000
B) $765,000
C) $821,000
D) $825,000
