Question

ABC 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 60% 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

Answer

· Cost assigned to Ending WIP Inventory
= (18000 units x 100% material complete x $ 2.75) + (18000 units x 60% conversion complete x $ 4.25)
= 49500 + 45900
= $ 95,400 [Answer]