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 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 50% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Answer 1

The correct answer is "$87,750".

Step-by-step explanation:

In process inventory, the overall cost allocated to the final job would be:

⇒
`Sum \ of \ material +labour \ material`

⇒
`18000 \ units`

The unit of ending were 100%

⇒
`2.75 = 45,500` ($)

Labor =
`18000* 50 \ percent * 4.25`

=
`38,250` ($)

In process inventory, the overall cost allocated to the final job would be:

⇒
`Material+Labor`

⇒
`49,500+38,250`

⇒
`87,750` ($)