Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
A)$14,930
B)$23,466
C)$9,778
D)$39,110

Question

Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:  Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
A)$14,930 
B)$23,466 
C)$9,778 
D)$39,110

Quizplus · Accepted Answer

The cost of ending work in process inventory in the first processing department according to the company's cost system is $14,930. This is because the company uses a FIFO cost flow assumption, which means that the first units of inventory purchased are the first units to be sold. Therefore, the ending work in process inventory is made up of the most recent units purchased, which have a cost of $14,930.

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