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 18,600 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 $2.90 for materials and $4.40 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice $103,044 $81,468 $135,780 $86,676

Answer 1

Answer:

A. $103,044

Explanation:

Ending work in progress inventory = 18,600 units

Cost of equivalent unit for material = $2.90 per unit

Ending work in progress inventory i= 100% complete for material

Total cost of inventory for material = 18,600 units * $2.90 per unit

Total cost of inventory for material = $53,940

Cost of equivalent unit for labor = $4.40

Ending work in progress = 60% complete for labor

Cost of ending work in progress = $4.40 * 60% * 18,600

Cost of ending work in progress = $49,104

Total cost of ending work in progress inventory = $53,940 + $49,104

Total cost of ending work in progress inventory = $103,044