Figure 6-14 The following information is available for Department A for the month of January:
Materials are added at the beginning of the process.Round unit costs to two decimal places.
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Refer to Figure 6-14.The cost of ending work in process using the weighted average method is

Question

Figure 6-14 The following information is available for Department A for the month of January:
 Materials are added at the beginning of the process.Round unit costs to two decimal places.
-
Refer to Figure 6-14.The cost of ending work in process using the weighted average method is

Quizplus · Accepted Answer

To calculate the cost of ending work in process using weighted average method, the cost per equivalent unit is first calculated. This is done by dividing the total cost of beginning work in process and units completed during the month by the equivalent units produced.

Total cost of beginning work in process and units completed during the month = $230,400 + $2,838,720 = $3,069,120

Equivalent units produced = 21,600 + (1,800 × 60%) = 22,680

Cost per equivalent unit = $3,069,120 ÷ 22,680 = $135.34 (rounded to the nearest cent)

Now, the cost of ending work in process is calculated by multiplying the equivalent units in ending work in process by the cost per equivalent unit.

Equivalent units in ending work in process = 1,440 units (90% of 1,600 units)

Cost of ending work in process = 1,440 × $135.34 = $194,905.60 (rounded to the nearest cent)

Therefore, the correct answer is B) $21,312.

Figure 6-14 the Following Information Is Available for Department a for the Month