Miramar, Inc. uses a weighted-average process costing system which recognizes normal spoilage as 5% of good output. During the current period, 14,000 units were started and 10,000 units completed. Materials are added at the beginning of the process, conversion costs occur uniformly, and the inspection point is at the 70% point. Beginning work in process was 6,000 units, 40% complete, and ending work in process 9,000 units, 80% complete. The cost per equivalent unit for material was $1.00 and for conversion costs $3.00.
The total costs in work in process during the period were:
A) $31,995
B) $70,600
C) $73,700
D) Cannot be determined

Question

Quizplus · Accepted Answer

The total costs in work in process are calculated by considering the costs of completed units, normal spoilage, and ending work in process. The equivalent units for materials and conversion costs are calculated separately, and then multiplied by their respective cost per equivalent unit.