Question

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice
$75,600
$95,400
$80,100
$126,000

Answer 1

Answer:

$95,400

Explanation:

The computation of total cost of ending work in progress inventory is shown below:-

Material = 18,000 Units × 100% × $2.75

= $49,500

Labor = 18,000 Units × 60% × $4.25

= $45,900

The total cost assigned to the ending work in process inventory = Material + Labor

= $49,500 + $45,900

= $95,400

So, for computing the total cost assigned to the ending work in process inventory  we simply add material with labor.