Question

Lucas Corporation uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows: Units Materials Cost Work in process on October 1 6,000 $ 3,000 Units started during October 50,000 $ 25,560 Units completed and transferred to the next Department during October 44,000 What was the materials cost of work in process at October 31

Answer 1

ending WP invenotry: 6,000 units at 6,120 cost

Step-by-step explanation:

Lucas Corporation uses the weighted-average

EU = complete units + ending WIP x percentage of completion

ending WIP inventory

beginning + started - completed

6,000 + 50,000 - 44,000 = 12,000

completed units: 44,000

ending WIP 12,000 x 100% = 12,000

equivalent units materials 56,000

COST: 3,000 + 25,560 = 28,560

Cost per EU: 28,560 / 56,000 = 0.51

assing cost to ending WIP inventory 12,000 x 0.51 = 6,120