Overland,Inc.,uses the weighted-average method in its process costing system.The company's work-in-process inventory on April 30 consists of 25,000 units.The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs.If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs,what is the total cost in the April 30 work-in-process inventory?
A) $212,500.
B) $178,125.
C) $159,375.
D) $109,375.

Question

Quizplus · Accepted Answer

To calculate the total cost in the April 30 work-in-process inventory, we need to first find the equivalent units for both materials and conversion costs:

Equivalent units for materials = 25,000 units × 100% complete = 25,000 units
Equivalent units for conversion costs = 25,000 units × 75% complete = 18,750 units

Next, we multiply the equivalent units by the cost per equivalent unit:

Total cost for materials = 25,000 units × $3.00 per unit = $75,000
Total cost for conversion costs = 18,750 units × $5.50 per unit = $103,125

Finally, we add the two costs together to get the total cost in the April 30 work-in-process inventory:

Total cost = $75,000 + $103,125 = $178,125

Therefore, the answer is choice B, $178,125.