Question

A company uses the weighted-average method for inventory costing. At the end of the period, 16,000 units were in the ending Work in Process inventory and are 100% complete for materials and 71% complete for conversion. The equivalent costs per unit are materials, $2.61, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Answer 1

Answer:

$66,752

Explanation:

The computation of ending Work in Process inventory is shown below:-

For Material = 16,000 × 100%

= 16,000

For conversion = 16,000 × 71%

= 11,360

Cost of ending inventory = (Material × Material cost per unit) + (Conversion × Conversion cost per unit)

= (16,000 × $2.61) + (11,360 × $2.20)

= $41,760 + $24,992

= $66,752

Therefore for computing the cost of ending inventory we simply applied the above formula.