Asked by Emilija Dancetovic on May 01, 2024
Verified
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 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:
A) $126,000
B) $75,600
C) $80,100
D) $95,400
Weighted-Average Method
A method for valuing inventory that figures out the cost of goods sold and the end inventory value by averaging the cost of all items available for sale over the period.
Labor and Overhead
The combination of direct labor costs and overhead costs incurred in the production process.
- Determine the unit cost for materials and conversion charges on an equivalent basis.
- Describe the procedure for recording and computing costs related to units that have been transferred out and residual work in process inventory.
Verified Answer
ZK
Learning Objectives
- Determine the unit cost for materials and conversion charges on an equivalent basis.
- Describe the procedure for recording and computing costs related to units that have been transferred out and residual work in process inventory.
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