Question

Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 18,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $4.20 for material and $1.80 for labor and overhead, what is the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)

Answer 1

Balance of the ending work in process inventory account would be:

$ 98,280

Working:

Cost of ending work in process is calculated as follows:
			Equivalent units of Production				Cost per	Total Cost
			(EUP)				EUP
	Materials			18,000			$ 4.20	$            75,600
	Conversion			12,600			$ 1.80	$            22,680
	Total							$            98,280
	Working:
					Physical Units		% Materials	EUP-Materials	% Conversion	EUP-Conversion
			Ending Units		18,000		100%	18,000	70%	12,600