Question

The Richmond Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending workin 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 costassigned to the ending work in process inventory was:

Answer 1

STEP 1: CALCULATE EQUIVALENT UNITS

MATERIALS	18,000 X 100% =	18,000 UNITS
LABOR AND OVERHEAD	18,000 X 60% =	10,800 UNITS

STEP 2: CALCULATE TOTAL COST ENDING WORK IN PROCESS

MATERIALS	18,000 X $2.75 =	$49,500
LABOR AND OVERHEAD	10,800 X 4.25 =	$45,900
TOTAL	-	$95,400

ANSWER: $95,400