Question

The Lakeside Company uses a weighted-average process costing system. The following data are available:

Beginning inventory		-0-
Units started in production		20,000
Units finished during the period		16,000
Units in process at the end of the period (complete as to materials, ¼ complete as to labor and overhead)		4,000
Cost of materials used	$	35,200
Labor and overhead costs	$	37,400

Total cost of the 4,000 units of the ending inventory:

Multiple Choice

• $9,240.

• $14,520.

• $8,910.

• $15,840.

Answer 1

Correct answer----------$9,240

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	16,000			100%	16,000.0	100%	16,000
Closing WIP	4,000			100%	4,000.0	25%	1,000
Total	20,000			Total	20,000.0	Total	17,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 35,200	$ 37,400	$ 72,600
Total Cost to be accounted for		$ 35,200	$ 37,400	$ 72,600
Total Equivalent Units		20,000	17,000
Cost per Equivalent Units		$                   1.76	$                     2.20

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 1.76	4,000	$             7,040.00
Conversion cost	$ 2.20	1,000	$             2,200.00
TOTAL	$ 72,600	TOTAL	$ 9,240