Asked by RMerline Benjamin on May 25, 2024
Verified
The total cost of the October 31 work in process inventory was?
A) $35,000.
B) $43,750.
C) $78,750.
D) $41,250.
Weighted-Average Method
An inventory costing method that averages the cost of goods available for sale, used to determine the cost of goods sold and ending inventory.
Mixing Department
A specific section within a manufacturing setup where materials are combined to produce a product.
Equivalent Units
An approach in process costing that transforms units that are only partly finished into an equivalent number of entirely completed units, facilitating accounting procedures.
- Comprehend and implement principles associated with materials and conversion expenses in process costing.
- Determine and explain the overall cost attributed to ending work in process and finished units.
Verified Answer
TH
Tanner HearneMay 26, 2024
Final Answer :
D
Explanation :
Total cost of materials = 4,000 equivalent units x $2.50 per equivalent unit = $10,000
Total cost of labour and overhead = 5,000 equivalent units x $6.25 per equivalent unit = $31,250
Total cost of work in process inventory = $10,000 + $31,250 = $41,250. Therefore, the answer is D.
Total cost of labour and overhead = 5,000 equivalent units x $6.25 per equivalent unit = $31,250
Total cost of work in process inventory = $10,000 + $31,250 = $41,250. Therefore, the answer is D.
Learning Objectives
- Comprehend and implement principles associated with materials and conversion expenses in process costing.
- Determine and explain the overall cost attributed to ending work in process and finished units.