yimron corporation uses the weighted - average method in its process costing system. information for the…

yimron corporation uses the weighted - average method in its process costing system. information for the month of march concerning department a, the first stage of the companys production process, follows:\n\n\n\n\n\n\n\nmaterials\nconversion cost\nwork in process, beginning\n$4,000\n$3,000\ncosts added during march\n$20,000\n$16,000\ncosts per equivalent unit\n$0.24\n$0.20\ncompleted and transferred to the next department\n90,000 units\n\nwork in process, ending\n10,000 units\n\n\n\nmaterials are added at the beginning of the process. the ending work - in - process inventory is 50 percent complete with respect to conversion costs. which cost would be recorded for the ending work - in - process inventory?\n\n$3,400\n\n$2,200\n\n$4,400\n\n$1,700

yimron corporation uses the weighted - average method in its process costing system. information for the month of march concerning department a, the first stage of the companys production process, follows:\n\n\n\n\n\n\n\nmaterials\nconversion cost\nwork in process, beginning\n$4,000\n$3,000\ncosts added during march\n$20,000\n$16,000\ncosts per equivalent unit\n$0.24\n$0.20\ncompleted and transferred to the next department\n90,000 units\n\nwork in process, ending\n10,000 units\n\n\n\nmaterials are added at the beginning of the process. the ending work - in - process inventory is 50 percent complete with respect to conversion costs. which cost would be recorded for the ending work - in - process inventory?\n\n$3,400\n\n$2,200\n\n$4,400\n\n$1,700

Answer

Explanation:

Step1: Calculate materials cost for ending WIP

Materials are added at beginning, so for 10,000 units of ending WIP, materials cost = (10,000\times0.24) = (2400)

Step2: Calculate conversion cost for ending WIP

Ending WIP is 50% complete for conversion. Conversion cost = (10,000\times0.5\times0.20) = (1000)

Step3: Calculate total cost for ending WIP

Total cost = Materials cost + Conversion cost = (2400 + 1000) = (3400)

Answer:

(3400) (First option: ($3,400))