Raider Corporation uses the weighted-average method in its process costing syste
ID: 2390561 • Letter: R
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?
Multiple Choice
$20,160.80
$22,106.70
$5,040.20
$25,201.00
Units Percent Complete withRespect to Conversion Beginning work in process inventory 7,700 10 % Transferred in from the prior department during January 64,000 Completed and transferred to the next department during January 63,800 Ending work in process inventory 7,900 80 %
Explanation / Answer
A. $20,160.80
Equivalent units of production in ending work in process inventory = 7,900 * 80% = 6,320
Cost of ending work in process inventory = Equivalent units of production * Cost per equivalent unit = 6,320 * $3.19 = $20,160.80
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