Assume that ending work in process is 8,000 units, 20% complete, and that 20,000 units were completed and transferred out. The beginning work in process was 75% complete. Materials are added when the process is 50% complete, and the cost of materials added during the month was $61,500. Using the weighted average method, materials are allocated at $4.00 per equivalent unit. The cost of material included in the beginning work in process from last month was:
A) $18,500
B) $20,000
C) $34,500
D) None of the above

Question

Quizplus · Accepted Answer

The cost of material included in the beginning work in process from last month was $18,500. This is calculated as follows:Beginning work in process = 7,000 unitsPercentage of completion = 75%Equivalent units = 7,000 units x 75% = 5,250 unitsCost of materials added per equivalent unit = $4.00Cost of material included in the beginning work in process = 5,250 units x $4.00 = $18,500

Assume That Ending Work in Process Is 8,000 Units, 20