Question

Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department

Answer 1

Answer:

$39520

Explanation:

The computation of the total cost of ending work in process for the Milling Department is given below:

But before that the equivalent cost per unit is

Material = $301600 ÷ 5200

= $58 per unit

And,

Conversion = $408000 ÷ 5000

= $81.60 per unit

So,

Ending Work in Process = 400 × $58 + 200 × $81.60

= $39520