Department A had no Work-in-Process at the beginning of the period,1,000 units were completed during the period,200 units were 50% completed at the end of the period,and the following manufacturing costs were debited to the departmental Work-in-Process account during the period Assuming that all direct materials are placed in process at the beginning of production and Department A uses weighted-average process costing,what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

Question

Quizplus · Accepted Answer

The equivalent units of production equals the units completed during the period plus the equivalent units in ending work-in-process inventory. 
Equivalent units of production=(1,000 completed units)+(200 units, 50% complete)=1,100 equivalent units

Total manufacturing cost incurred during the period=$2,200+$1,100+$2,000=$5,300 
Cost per equivalent unit for department A=Total manufacturing cost incurred during the period / Equivalent units of production =$5,300/1,100 =$4.82 
Cost of the ending work-in-process inventory=Cost per equivalent unit x equivalent units in ending work-in-process inventory 
=(0.5 x $4.82 x 200) =$482 
Therefore, the total cost of the departmental work-in-process inventory at the end of the period is $2,900 ($482 + $2,418). The correct answer is B.

Department a Had No Work-In-Process at the Beginning of the Period,1,000