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Rariton Company Uses the Weighted-Average Method in Its Process Costing

Question 32

Multiple Choice

Rariton Company uses the weighted-average method in its process costing system.The Moulding Department is the second department in its production process.The data below summarize the department's operations in January:
 Units Percentage complete  Beginning work in process 4,80060% inventory  Transferred in from the  prior department during 78,000 January  Completed and transferred  to the next department  during January 80,900 Ending work in process  inventory 1,90040%\begin{array}{|l|r|r|}\hline&\text { Units}&\text { Percentage complete }\\\hline \text { Beginning work in process } &4,800 & 60 \% \\\text { inventory } & \\\hline \begin{array}{l}\text { Transferred in from the } \\\text { prior department during }\end{array} & 78,000 & \\\text { January }\\\hline \begin{array}{l}\text { Completed and transferred } \\\text { to the next department } \\\text { during January }\end{array} &80,900 & \\\hline \begin{array}{l}\text { Ending work in process } \\\text { inventory }\end{array} &1,900 & 40 \% \\\hline\end{array}


The Moulding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37.
How much conversion cost was assigned to the ending work-in-process inventory in the Moulding Department for January?


A) $4,081.20.
B) $10,203.00.
C) $10,310.40.
D) $6,121.80.

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