Rariton Company uses the weighted-average method in its process costing system.
A)$4,081.20.
B)$10,310.40
C)$6,121.80.
D)$10,203.00.

Question

Quizplus · Accepted Answer

The weighted-average method assigns the total cost of production to the units produced during the period. The total cost of production is the sum of the beginning work in process inventory, the cost of materials added during the period, and the cost of conversion added during the period. The total cost of production is then divided by the number of units produced during the period to get the weighted-average cost per unit. In this case, the total cost of production is $10,203.00 and the number of units produced during the period is 1,000 units. Therefore, the weighted-average cost per unit is $10.20. The beginning work in process inventory is 400 units at a cost of $4,081.20. The cost of materials added during the period is $3,000.00. The cost of conversion added during the period is $3,121.80.

Rariton Company Uses the Weighted-Average Method in Its Process Costing