Question

Jimmy corporation 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?

Answer 1

Weighted-average method

Materials Labor and Overhead

Ending work in process:

Materials: 20,000 units × 100% 20,000

Conversion: 20,000 units × 70% 14,000

Equivalent units of production in ending work in process 20,000 14,000

Materials Labor and Overhead Total

Ending work in process inventory:

Equivalent units of production (a) 20,000 14,000

Cost per equivalent unit (b) $3.20 $2.00

Cost of ending work in process inventory (a) × (b) $64,000 $28,000

$92,000