Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account?
A)$41,625
B)$33,750
C)$45,000
D)$31,500

Question

Quizplus · Accepted Answer

The balance of the ending work in process inventory account is calculated by considering the equivalent units for materials and labor/overhead. Materials are 100% complete, so 9,000 units x $3.75 = $33,750. Labor and overhead are 70% complete, so 9,000 units x 70% x $1.25 = $7,875. Total cost = $33,750 + $7,875 = $41,625.

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