Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow:
Work-in-process, April 1.

-The total cost of the ending work-in-process is
A) $403,200.
B) $241,920.
C) $333,792.
D) $342,720.

Question

Fan Corporation manufactures snowboards. Material is introduced at the beginning of the process in the Assembly department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Assembly department for the month of April, 20X1 follow:
Work-in-process, April 1.
   
-The total cost of the ending work-in-process is
A) $403,200. 
B) $241,920. 
C) $333,792. 
D) $342,720.

Quizplus · Accepted Answer

To calculate the total cost of ending work-in-process, we need to determine the equivalent units of production and the cost per equivalent unit of production.

Equivalent units of production for direct materials: 
Units started and completed = 110,000 
Units in ending work-in-process = 25,000 x 60% = 15,000 
Equivalent units of production for direct materials = 110,000 + 15,000 = 125,000

Equivalent units of production for conversion costs: 
Units started and completed = 110,000 
Units in ending work-in-process = 25,000 x 30% = 7,500 
Equivalent units of production for conversion costs = 110,000 + 7,500 = 117,500

Total cost of direct materials = $220,000 
Total cost of conversion costs = $191,792

Cost per equivalent unit of production for direct materials = $220,000 / 125,000 = $1.76 
Cost per equivalent unit of production for conversion costs = $191,792 / 117,500 = $1.63

Total cost of ending work-in-process = 
Direct materials cost for ending work-in-process = 15,000 x $1.76 = $26,400 
Conversion costs for ending work-in-process = 7,500 x $1.63 = $12,225 
Total cost of ending work-in-process = $26,400 + $12,225 = $38,625

Therefore, the correct answer is C ($333,792).

Fan Corporation Manufactures Snowboards