Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75.A total of 250,000 units of product were completed and transferred out as finished goods during the month,and 36,000 of equivalent units remained unfinished at the end of the month.The amount that should be reported in ending Work in Process Inventory is:
A)$93,600.
B)$135,000.
C)$1,816,100.
D)$1,587,500.
E)$228,600.

Question

Quizplus · Accepted Answer

The ending Work in Process Inventory is calculated by multiplying the equivalent units remaining by the cost per equivalent unit for both direct materials and conversion. For 36,000 equivalent units: (36,000 units * $2.60) + (36,000 units * $3.75) = $93,600 + $135,000 = $228,600.

Williams Company Computed Its Cost Per Equivalent Unit for Direct