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 20,600 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 $3.40 for materials and $4.90 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Answer 1

Total cost assigned to the ending work-in-process = (Units of Ending work in process inventory on August 31 x cost per equivalent unit for material) + (Units of Ending work in process inventory on August 31 x cost per equivalent unit for labor and overhead)

= (20,600 units x $3.40 x 100%) + (20,600 units x $4.90 x 60%)

= $70,040 + $ 60,564

= $ 130,604