Using the weighted-average method of process costing,the total costs remaining in work in process on May 31 are:
A)$0.
B)$12,040.
C)$17,480.
D)$25,640.
E)some other amount.

Question

Quizplus · Accepted Answer

The weighted-average method of process costing calculates the average cost per unit by dividing the total cost to account for (costs added during the current period plus the cost of beginning work in process) by the equivalent units of production.

Total equivalent units of production for May = Units completed and transferred out + Equivalent units in ending work in process
= 2,400 + (3,400 x 60%)
= 2,400 + 2,040
= 4,440

Cost per equivalent unit = Total cost to account for / Total equivalent units of production
= ($50,000 + $15,000) / 4,440
= $11.71 per unit

Total cost of ending work in process = Cost per equivalent unit x Equivalent units in ending work in process
= $11.71 x (3,400 x 40%)
= $15,880

Thus, the total costs remaining in work in process on May 31 are $15,880, which is closest to option B ($12,040).

Using the Weighted-Average Method of Process Costing,the Total Costs Remaining