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Materials costs of $300,000 and conversion costs of $214,200 were charged to a processing department in the month of September.Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process.There were no units in beginning Work in Process, 100,000 units were started into production in September, and there were 8,000 units in ending Work in Process that were 40% complete at the end of September.
-What was the total amount of manufacturing costs assigned to the 8,000 units in the ending Work in Process if the weighted-average method is used?
A)$24,000
B)$34,000
C)$13,600
D)$31,200

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Materials costs of $300,000 and conversion costs of $214,200 were charged to a processing department in the month of September.Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process.There were no units in beginning Work in Process, 100,000 units were started into production in September, and there were 8,000 units in ending Work in Process that were 40% complete at the end of September.
-What was the total amount of manufacturing costs assigned to the 8,000 units in the ending Work in Process if the weighted-average method is used?
A)$24,000
B)$34,000
C)$13,600
D)$31,200

Quizplus · Accepted Answer

The total manufacturing costs assigned to the 8,000 units in the ending Work in Process using the weighted-average method can be calculated by first determining the cost per equivalent unit for both materials and conversion costs, and then applying these costs to the equivalent units in the ending Work in Process. The total manufacturing costs are $300,000 for materials and $214,200 for conversion, summing up to $514,200. Since materials are added at the beginning, all 8,000 units are 100% complete for materials. Conversion costs are 40% complete for the 8,000 units. The equivalent units for materials are 8,000 and for conversion costs are 8,000 * 40% = 3,200. The cost per equivalent unit is calculated by dividing the total costs by the total units produced (100,000 units started and completed plus the equivalent units for the incomplete work). The calculation for the ending Work in Process would involve applying the cost per equivalent unit for both materials and conversion to the equivalent units in the ending inventory. The correct calculation leads to a total of $31,200 assigned to the 8,000 units in the ending Work in Process.

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