a company uses the weighted - average method for inventory costing. at the end of the period, 23,000 units…

a company uses the weighted - average method for inventory costing. at the end of the period, 23,000 units were in the ending work in process inventory and are 100% complete for materials and 76% complete for conversion. the equivalent costs per unit are materials, $2.66, and conversion $2.20. compute the cost that would be assigned to the ending work in process inventory for the period. multiple choice $99,636 $186,530 $94,716 $156,446 $147,763

a company uses the weighted - average method for inventory costing. at the end of the period, 23,000 units were in the ending work in process inventory and are 100% complete for materials and 76% complete for conversion. the equivalent costs per unit are materials, $2.66, and conversion $2.20. compute the cost that would be assigned to the ending work in process inventory for the period. multiple choice $99,636 $186,530 $94,716 $156,446 $147,763

Answer

Explanation:

Step1: Calculate cost of materials in WIP

The materials are 100% complete. So cost of materials in WIP = Equivalent - cost per - unit of materials×Number of units in WIP. Given equivalent - cost per - unit of materials = $2.66 and number of units in WIP = 23000. So cost of materials in WIP = $2.66×23000=$61180.

Step2: Calculate cost of conversion in WIP

The conversion is 76% complete. Equivalent - cost per - unit of conversion = $2.20. So cost of conversion in WIP = Equivalent - cost per - unit of conversion×(Number of units in WIP×Percentage of completion of conversion). Cost of conversion in WIP = $2.20×(23000×0.76)=$2.20×17480 = $38456.

Step3: Calculate total cost of WIP

Total cost of WIP = Cost of materials in WIP+Cost of conversion in WIP. Total cost of WIP = $61180 + $38456=$99636.

Answer:

$99,636