A company uses the weighted-average method for inventory costing. At the end of the period, 22,000 units were in the ending goods in process inventory and are 100% complete for materials and 75% complete for labor and overhead. The equivalent costs per unit are; materials, $2.65, labor, $2.15, and overhead, $3.20. Compute the cost that would be assigned to the ending goods in process inventory for the period.
A) $146,575.
B) $176,000.
C) $87,725.
D) $93,775.
E) $132,000.

Question

Quizplus · Accepted Answer

The cost that would be assigned to the ending goods in process inventory for the period is $146,575. This is calculated as follows:Materials cost = 22,000 units * $2.65 per unit = $58,300Labor cost = 22,000 units * $2.15 per unit * 75% = $37,425Overhead cost = 22,000 units * $3.20 per unit * 75% = $50,850Total cost = $58,300 + $37,425 + $50,850 = $146,575

A Company Uses the Weighted-Average Method for Inventory Costing