Schiller Company has unit costs of $6 for materials and $15 for conversion costs.There are 4,200 units in ending Work in Process which are 25% complete as to conversion costs, and fully complete as to materials cost.How much is the total cost assignable to the ending Work in Process inventory if the weighted-average method is used?
A)$40,950
B)$88,200
C)$25,200
D)$15,750

Question

Quizplus · Accepted Answer

The total cost assignable to the ending Work in Process inventory is calculated by adding the full cost of materials for all units (since they are 100% complete for materials) and the partial cost of conversion for the percentage completion. For 4,200 units, materials cost = 4,200 units * $6/unit = $25,200. Conversion cost for 25% completion = 4,200 units * $15/unit * 25% = $15,750. Total cost = $25,200 (materials) + $15,750 (conversion) = $40,950.

Schiller Company Has Unit Costs of $6 for Materials and $15