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 50% 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:

Answer 1

Answer:

The correct answer is "$87,750".

Explanation:

In process inventory, the overall cost allocated to the final job would be:

⇒ $Sum \ of \ material +labour \ material$

⇒ $18000 \ units$

The unit of ending were 100%

⇒ $2.75 = 45,500$ ($)

Labor = $18000\times 50 \ percent \times 4.25$

          = $38,250$ ($)

In process inventory, the overall cost allocated to the final job would be:

⇒  $Material+Labor$

⇒  $49,500+38,250$

⇒  $87,750$ ($)