Question

Jimmy Company 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? Select one: a. $41,625 b. $33,750 c. $45,000 d. $31,500

Answer 1

Answer:

The correct answer is A.

Explanation:

Giving the following information:

The ending work in process inventory consists of 9,000 units.

The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.

The cost per equivalent unit for the period is $3.75 for material and $1.25.

First, we need to calculate the ending inventory in units for equivalent units:

Direct material= 9,000*1= 9,000 units

Conversion costs= 9,000*0.7= 6,300

Now, the cost of ending inventory:

Direct material= 9,000*3.75= 33,750

Conversion costs= 6,300*1.25= 7,875

Total cost= $41,625