Overland,Inc.uses the weighted-average method in its process costing system.The company's work in process inventory on April 30 consists of 25,000 units.The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs.If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs,the total cost in the April 30 work in process inventory is? (Do not round intermediate calculations)
A) $109,375.
B) $159,375.
C) $178,125.
D) $212,500.

Question

Quizplus · Accepted Answer

The total cost in the April 30 work in process inventory can be calculated as follows:

Materials cost = 25,000 units × 100% complete × $3.00 per equivalent unit = $75,000
Conversion cost = 25,000 units x 75% complete × $5.50 per equivalent unit = $103,125
Total cost = Materials cost + Conversion cost = $75,000 + $103,125 = $178,125

Therefore, the best choice is C, $178,125.