Overland, Inc., uses the weighted-average method in its process costing system. The company's work in process inventory on April 30 consists of 25,000 units. The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs. If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs, the total cost in the April 30 work in process inventory is:
A) $212,500
B) $178,125
C) $159,375
D) $109,375

Question

Quizplus · Accepted Answer

The total cost is calculated by adding the cost of materials and conversion costs. Materials cost: 25,000 units * $3.00 = $75,000. Conversion cost: 25,000 units * 75% * $5.50 = $103,125. Total cost = $75,000 + $103,125 = $178,125.