Raider Corporation uses the weighted-average method in its process costing system.The Molding Department is the second department in its production process.The data below summarize the department's operations in January. The Molding Department's cost per equivalent unit for conversion cost for January was $3.19. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Question

Raider Corporation uses the weighted-average method in its process costing system.The Molding Department is the second department in its production process.The data below summarize the department's operations in January.  The Molding Department's cost per equivalent unit for conversion cost for January was $3.19. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Quizplus · Accepted Answer

To assign the conversion cost to the ending work in process inventory, we first need to calculate the equivalent units of production for conversion cost. 
Equivalent units of production for conversion cost = Units completed and transferred out + Equivalent units in ending work in process inventory = 672,200 + 6,300 = 678,500 
Therefore, the total conversion cost to be assigned to the ending work in process inventory = Equivalent units in ending work in process inventory * Cost per equivalent unit for conversion cost = 6,300 * $3.19 = $20,160.80 
Hence, the correct answer is option C. Weighted-average method 11ea7998_5e4c_4ced_911b_f9178f696c98_TB2627_00_TB2627_00 11ea7998_5e4c_73fe_911b_9ba6f014ab10_TB2627_00_TB2627_00

Raider Corporation Uses the Weighted-Average Method in Its Process Costing