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Problem - Sandisk Corp. produces a product for which all direct materials are added at the beginning of the production process. The following is a review of Sandisk's cost and inventory records for the recent year:
Units Materials Conversion WIP Jan 1st (80% complete with respect to Conversion costs) 125,000 $145,000 $182,500
Units started into production 600,000 Cost added during the year: Materials $580,000 Conversion $1,043,000
Units Completed during the year 525,000
In its process costing system, Sandisk is using the weighted-average cost method. Ending inventory for the year is 60% complete with respect to conversion costs. What amount of cost was transferred to finish goods inventory?
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