Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $3.39. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
A) $22,126.70
B) $33,561.00
C) $26,848.80
D) $6,712.20

Question

Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.  The Molding Department's cost per equivalent unit for conversion cost for January was $3.39. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
A) $22,126.70 
B) $33,561.00 
C) $26,848.80 
D) $6,712.20

Quizplus · Accepted Answer

To calculate the conversion cost assigned to the ending work in process inventory, we need to multiply the equivalent units of ending work in process inventory by the cost per equivalent unit for conversion cost.

From the data provided, the equivalent units of ending work in process inventory for January were 7,920. 
The cost per equivalent unit for conversion cost for January was $3.39. 
Therefore, the conversion cost assigned to the ending work in process inventory in the Molding Department for January is:
$3.39 x 7,920 = $26,848.80

Hence, the best choice is C.

Raider Corporation Uses the Weighted-Average Method in Its Process Costing