David Katz' assembly department has materials cost at $3 per unit and conversion cost at $6 per unit.There are 9,000 units in ending Work in Process, all of which are 70% complete as to conversion costs and fully complete as to direct materials.How much are total costs to be assigned to inventory if the weighted-average method is used?

Question

Quizplus · Accepted Answer

To calculate the total cost using the weighted-average method, we need to first calculate the equivalent units for both direct materials and conversion costs.
Equivalent units for direct materials = 9,000 units x 1 = 9,000 units
Equivalent units for conversion costs = 9,000 units x 0.7 = 6,300 units

Total cost to be assigned to inventory = (Equivalent units for direct materials x Cost per unit for direct materials) + (Equivalent units for conversion costs x Cost per unit for conversion costs)
= (9,000 units x $3 per unit) + (6,300 units x $6 per unit)
= $27,000 + $37,800
= $56,700
Therefore, the best choice is C.

David Katz' Assembly Department Has Materials Cost at $3 Per