Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories $ =250 $ units, $ 40 \% $ complete
Direct materials costs $ =\$ 1,250 $
Conversion costs $ =\$ 1,356 $
Transferred-in costs $ =\$ 2,560 $

During May: Direct materials costs incurred $ =\$ 6,000 $ Conversion costs incurred $ =\$ 17,013 $

On May 31: Ending Inventories $ =350 $ units, $ 20 \% $ complete Using the weighted average method, the cost of the ending work in process inventory was:
A) $13,958
B) $13,944
C) $12,663
D) $12,649

Question

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories $ =250 $ units, $ 40 \% $ complete
Direct materials costs $ =\$ 1,250 $
Conversion costs $ =\$ 1,356 $
Transferred-in costs $ =\$ 2,560 $

During May: Direct materials costs incurred $ =\$ 6,000 $ Conversion costs incurred $ =\$ 17,013 $

On May 31: Ending Inventories $ =350 $ units, $ 20 \% $ complete Using the weighted average method, the cost of the ending work in process inventory was:
A) $13,958
B) $13,944
C) $12,663
D) $12,649

Quizplus · Accepted Answer

The cost of the ending work in process inventory is calculated by first determining the total costs, then allocating these costs based on the weighted average method. Total costs include transferred-in costs, direct materials, and conversion costs. The calculation involves determining the equivalent units for both direct materials and conversion costs, then applying these to the costs incurred. The ending inventory is valued by considering the percentage completion for direct materials and conversion costs, leading to the correct calculation of $12,649.

Zuniga, Inc =250 =250 =250 Units 40% 40 \% 40% Complete Direct Materials Costs

Zuniga, Inc $=250$ Units $40 \%$ Complete
Direct Materials Costs