David Katz' Assembly Department has materials cost at $3 per unit and conversion cost at $6 per unit.There are 9,000 units in ending Work in Process, all of which are 70% complete as to conversion costs and fully complete as to direct materials.How much are total costs to be assigned to inventory if the weighted-average method is used?
A)$37,800
B)$64,800
C)$56,700
D)$81,000

Question

Quizplus · Accepted Answer

The total costs for ending Work in Process inventory can be calculated by adding the full materials cost for all units (since they are 100% complete for materials) and the conversion costs for the percentage completion. For 9,000 units, materials cost is $3/unit, so total materials cost is $3 * 9,000 = $27,000. Conversion cost is $6/unit, but since they are only 70% complete, the total conversion cost is $6 * 9,000 * 70% = $37,800. Adding both gives $27,000 + $37,800 = $64,800.

David Katz' Assembly Department Has Materials Cost at $3 Per