In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00. The department transferred out 12,000 units and had 1,500 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is
A) 2,400.
B) 7,500.
C) 8,400.
D) 12,000.

Question

Quizplus · Accepted Answer

To find the cost to be assigned to the ending work in process, we need to use the weighted average method.

First, let's calculate the cost of the units transferred out:
Unit cost = unit materials cost + unit conversion cost
Unit cost = $5.00 + $3.00 =$8.00
Total cost of units transferred out = unit cost x number of units transferred out
Total cost of units transferred out = $8.00 x 12,000 = $96,000

Next, let's calculate the cost of the ending work in process:
Unit cost = unit materials cost + unit conversion cost
Unit cost = $5.00 + $3.00 = $8.00
Total cost of ending work in process = unit cost x number of units in ending work in process x percentage complete
Total cost of ending work in process = $8.00 x 1,500 x 20% = $2,400

Therefore, the total cost to be assigned to the ending work in process is $2,400. The best choice is C.

In the Shaping Department of Rollins Company the Unit Materials