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joja [24]
4 years ago
6

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin

g 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:
Business
1 answer:
Dimas [21]4 years ago
5 0

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 ($)

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