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

Question

Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 16,000 units. The ending work in process inventory is 100% complete with respect to materials and 80% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.20 for material and $2.30 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) $72,140 $80,640 $50,700 $88,000

Explanation / Answer

Ending work in process inventory 16000 Units % of complition Material 100% % of complition Convesrion 80% Equivalent units of material (16000*100%) 16000 Units Equivalent units of Convesrion (16000*80%) 12800 Units Balance of ending work in process Material cost (16000*3.20) $51,200.00 Convesrion cost (12800*2.30) $29,440.00 Total $80,640.00 Therefore, Second option $80,640 is correct

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