Question

Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department’s operations in January. Units Percent Complete with Respect to Conversion Beginning work in process inventory 9,400 10 % Transferred in from the prior department during January 81,000 Completed and transferred to the next department during January 80,800 Ending work in process inventory 9,600 80 % The Molding Department’s cost per equivalent unit for conversion cost for January was $3.36. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Answer 1

Answer:

$25,804.8

Explanation:

Given that,

Cost per equivalent unit for conversion cost for January = $3.36

Beginning work in process inventory = 9,400

Transferred in from the prior department during January = 81,000

Completed and transferred to the next department during January = 80,800

Equivalent units of ending work in process:

= Ending work in process inventory × Percent Complete with Respect to Conversion

= 9,600 × 80%

= 7,680

Conversion cost was assigned to the ending work in process inventory:

= Equivalent units of ending work in process × Cost per equivalent unit for conversion cost

= 7,680 × $3.36

= $25,804.8