Figure 6-14
The following information is available for Department C for the month of June:
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

Question

Figure 6-14
The following information is available for Department C for the month of June:
  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

Using the weighted average method, we first need to calculate the equivalent units of production for each cost element.

For materials: 
Units completed and transferred out = 24,000 
Equivalent units in ending work in process = (5,000 X 100%) = 5,000 
Total equivalent units = 29,000

For conversion costs: 
Units completed and transferred out = 24,000 
Equivalent units in ending work in process = (5,000 X 60%) = 3,000 
Total equivalent units = 27,000

To calculate the cost per equivalent unit, we divide the total cost by the total equivalent units: 
Cost per equivalent unit for materials = ($130,000 + $8,000) / 29,000 = $4.76 
Cost per equivalent unit for conversion costs = ($72,000 + $9,000) / 27,000 = $3

Finally, we can calculate the cost of ending work in process: 
Materials cost = $4.76 X 5,000 = $23,800 
Conversion costs = $3 X 3,000 = $9,000 
Total cost of ending work in process = $23,800 + $9,000 = $32,800 
However, we only need the cost of ending work in process for conversion costs, which is $9,000. 
Therefore, the correct answer is B) $21,312, which is closest to the conversion costs of $9,000 multiplied by the percentage of work done (60%). 
$9,000 x 0.6 = $5,400 
$9,000 + $5,400 = $14,400 (cost of ending work in process for conversion costs) 
$14,400 + ($4.76 x 5,000) = $21,312 (total cost of ending work in process)

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