Asked by Abigail leyva on Jul 15, 2024
Verified
Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $3.39. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
A) $22,126.70
B) $33,561.00
C) $26,848.80
D) $6,712.20
Weighted-Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.
Conversion Costs
The sum of direct labor and manufacturing overhead costs, representing the costs incurred to convert raw materials into finished goods.
Process Costing
An accounting methodology used for homogeneous products, where the cost of the product is calculated by averaging the total production costs over the total units produced.
- Estimate the outlay per equivalent unit.
- Compute the price for units moved out and final inventory of work in process.
Verified Answer
From the data provided, the equivalent units of ending work in process inventory for January were 7,920.
The cost per equivalent unit for conversion cost for January was $3.39.
Therefore, the conversion cost assigned to the ending work in process inventory in the Molding Department for January is:
$3.39 x 7,920 = $26,848.80
Hence, the best choice is C.
Learning Objectives
- Estimate the outlay per equivalent unit.
- Compute the price for units moved out and final inventory of work in process.
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