avalt Corporation uses the weighted-average method in its process costing system

ID: 2422878 • Letter: A

Question

avalt 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 $8.80. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January? (Round your final answer to nearest whole dollar.)

Explanation / Answer

Calculation of conversion cost assigned to the ending work in process inventory in the Molding Department for January:

Units in Ending work in process inventory

7000

Percent Complete with Respect to Conversion

75%

Equivalent Units for Conversion cost in ending Work in Process = 7000*75%=

5250

Cost per equivalent unit for conversion cost for January

$ 8.80

Conversion cost assigned to the ending work in process inventory in the Molding Department for January = 5250 Units * $8.80

$ 46,200