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:

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SerenaBochenek SerenaBochenek · Answer 1 · 2020-10-13T08:35:45+02:00

Answer:

The correct answer is "$87,750".

Explanation:

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

⇒ [tex]Sum \ of \ material +labour \ material[/tex]

⇒ [tex]18000 \ units[/tex]

The unit of ending were 100%

⇒ [tex]2.75 = 45,500[/tex] ($)

Labor = [tex]18000\times 50 \ percent \times 4.25[/tex]

= [tex]38,250[/tex] ($)

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

⇒ [tex]Material+Labor[/tex]

⇒ [tex]49,500+38,250[/tex]

⇒ [tex]87,750[/tex] ($)