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 $3.19. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
A) $22,106.70
B) $25,201.00
C) $20,160.80
D) $5,040.20

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 $3.19. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
A) $22,106.70 
B) $25,201.00 
C) $20,160.80 
D) $5,040.20

Quizplus · Accepted Answer

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

Equivalent units of production for conversion cost:
Units in ending work in process inventory = 8,000
Degree of completion for conversion cost = 80%
Equivalent units of production = 8,000 x 0.80 = 6,400

Conversion cost assigned to ending work in process inventory:
Equivalent units of production for conversion cost = 6,400
Cost per equivalent unit for conversion cost = $3.19
Conversion cost assigned to ending work in process inventory = 6,400 x $3.19 = $20,160.80

Therefore, the answer is C.

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