Jimmy Corporation uses the weighted-average method in its process costing system
ID: 2430947 • Letter: J
Question
Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 12,000 units. The ending work in process inventory is 100% complete with respect to materials and 50% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.60 for material and $1.60 for labor and overhead, what is the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit) $52,800 $44,300 $62,400 $42,700
Explanation / Answer
Answer:
The balance of the ending work in process inventory =$52,800
Working notes for the above answer is as under
Ending work in progress
Units
Material :12000 x 100% complete
12000
Convesion :12000 x 50% complete
6000
Ending work in progress
Material
Conversion
Total
Equivalanet unit of production (a)
12000
6000
Cost per Equivalent Unit (b)
3.6
1.6
Cost of ending work in progress c= (a*b)
43200
9600
52800
Units
Material :12000 x 100% complete
12000
Convesion :12000 x 50% complete
6000
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