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 20,800 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 $3.45 for materials and $4.95 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Answer 1

Step-by-step explanation:

Ending work in progress inventory = 20,800 units

Cost of equivalent unit for material = $3.45 per unit

Total cost of inventory for material = 20,800 units × $3.45 per unit = $71,760

Cost of equivalent unit for labor = $3.45

Ending work in progress is 60% complete for labor

Cost of ending work in progress = $3.45 × 60% × 20,800 = $43,056

Total cost of ending work in progress inventory = $71,760+ $43,056= $114,816