Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to:
A) $156,960
B) $86,400
C) $153,960
D) $154,800

Question

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to:

-Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to:
A) $156,960 
B) $86,400 
C) $153,960 
D) $154,800

Quizplus · Accepted Answer

The weighted-average method assigns the total cost of production to the units completed and transferred out during the period and to the units in ending work in process inventory. The total cost of the units in ending work in process inventory is $156,960.

Cherrington Company Uses a Process Costing System