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 21,200 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 $3.55 for materials and $5.05 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Answer 1

Answer:

Cost of Ending WORK in Process $ 139496

Explanation:

Richmond Corporation

Weighted-Average Method

Ending work in process inventory  21,200 units

First we find the equivalent units in the ending work in process inventory.

Materials = 100% complete = 21200 units

Conversion= 60 % complete = 60% of 21200= 12720 units

Then we multiply the equivalent units of the work in process inventory with the equivalent cost per unit and then add the materials and conversion costs to get the total cost of the ending work in process inventory.

Materials = 21200 * $3.55 = $75260

Conversion = 12720 * $5.05=  $ 64,236

Cost of Ending WORK in Process= $75260+$ 64,236= $ 139496