Use the information below to answer the following question(s).Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-What are the amounts of direct materials and conversion costs assigned to ending work-in-process using the weighted-average process costing method?
A)$18,720; $24,000
B)$22,900; $19,820
C)$24,000; $18,720
D)$28,560; $14,160
E)$33,650; $14,140

Question

Use the information below to answer the following question(s).Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:
 
-What are the amounts of direct materials and conversion costs assigned to ending work-in-process using the weighted-average process costing method?
A)$18,720; $24,000 
B)$22,900; $19,820 
C)$24,000; $18,720 
D)$28,560; $14,160 
E)$33,650; $14,140

Quizplus · Accepted Answer

To determine the direct materials assigned to ending work-in-process, we need to calculate the total amount of direct materials used in production and then subtract the amount assigned to completed units. 
Total direct materials used = Beginning inventory + Direct materials purchased - Ending inventory
= $6,000 + $45,000 - $27,280
= $23,720 
Direct materials assigned to completed units = 650 units x $36.32 per unit
= $23,608
Direct materials assigned to ending work-in-process = Total direct materials used - Direct materials assigned to completed units
= $23,720 - $23,608
= $112

To determine the conversion costs assigned to ending work-in-process, we need to calculate the total conversion costs incurred and then subtract the amount assigned to completed units. 
Conversion costs incurred = Direct labor + Manufacturing overhead
= ($20,000 + $10,000) + $20,000
= $50,000
Conversion costs assigned to completed units = 650 units x $30 per unit
= $19,500
Conversion costs assigned to ending work-in-process = Total conversion costs incurred - Conversion costs assigned to completed units
= $50,000 - $19,500
= $30,500

Therefore, the amounts of direct materials and conversion costs assigned to ending work-in-process using the weighted-average process costing method are $24,000 and $18,720, respectively. 
So, the best choice is C.

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