A company uses the weighted-average method for inventory costing. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 100% complete for materials and 75% complete for conversion. The equivalent costs per unit are materials, $2.65 and conversion $5.35. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
A) $146,575.
B) $93,775.
C) $87,725.
D) $176,000.
E) $132,000.

Question

Quizplus · Accepted Answer

The cost assigned to the ending Work in Process inventory is calculated by multiplying the equivalent units by the cost per unit for both materials and conversion. For materials: 22,000 units * $2.65 = $58,300. For conversion: 22,000 units * 75% * $5.35 = $88,275. Total cost = $58,300 + $88,275 = $146,575.

A Company Uses the Weighted-Average Method for Inventory Costing