Raider Corporation uses the weighted-average method in its process costing syste
ID: 2400853 • 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. Percent Complete with Respect to Conversion Beginning work in process inventory Transferred in from the prior department during January Completed and transferred to the next department during January Ending work in process inventory Units 8,300 70,000 69,800 8,500 10% 80% The Molding Department's cost per equivalent unit for conversion cost for January was $3.25. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?Explanation / Answer
B. $22,100
Equivalent units of production in ending work in process inventory = 8,500 * 80% = 6,800
Cost of ending work in process inventory = Equivalent units of production * Cost per equivalent unit = 6,800 * $3.25 = $22,100
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