Bettie Corporation uses a weighted-average process costing system to collect cos

Question

Bettie Corporation uses a weighted-average process costing system to collect costs related to production. The following selected information relates to production for October: Materials Conversion Units completed and transferred out Equivalent units: work in process, October 31 Total equivalent units 50,800 10,800 60,000 50,800 4,000 54,eee Costs in work in process on October 1 Costs added to production during October Total cost Materials Conversion $9,000 243,000 $252,00 2100 $ 5,400 513,e00 $518,400 All materials at Bettie are added at the beginning of the production process What total amount of cost should be assigned to the units in work in proçess on October 313 Multiple Choice $78,500 $ 80,400 $135,500

Explanation / Answer

Step-1:Calculation of cost per equivalent unit of production Material Conversion Costs in Work in Process $             9,000 $             5,400 Costs added to production during october $       2,43,000 $       5,13,000 Total costs $       2,52,000 $       5,18,400 / Equivalent units of production 60000 54000 Cost per Equivalent unit $               4.20 $               9.60 Step-2:Calculation of costs of ending work in process Cost per Total costs Equivalent units of production Equivalent units of production Materials        10,000 $       4.20 $       42,000 Conversion           4,000 $       9.60 $       38,400 Total $       80,400 Thus, Costs should be assigned to the units in work in process on October 31 $ 80,400

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