A company uses the weighted-average method for inventory costing.At the end of the period,22,000 units were in the ending Work in Process inventory and are 100% complete for materials and 75% complete for conversion.The equivalent costs per unit are materials,$2.65 and conversion $5.35.Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Question

Quizplus · Accepted Answer

The cost of the ending Work in Process inventory is the sum of the materials cost and the conversion cost. The materials cost is $2.65 per unit, and the conversion cost is $5.35 per unit. The ending Work in Process inventory is 100% complete for materials and 75% complete for conversion. Therefore, the cost of the ending Work in Process inventory is $2.65 + (0.75 * $5.35) = $6.66 per unit. The ending Work in Process inventory has 22,000 units, so the total cost of the ending Work in Process inventory is $6.66 * 22,000 = $146,575.

A Company Uses the Weighted-Average Method for Inventory Costing