The Richmond Company uses the weighted-average method in its process costing sys

Question

The Richmond Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:
A. $126,000
B. $75,600
C. $80,100
D. $95,400

Explanation / Answer

The total cost assigned to the ending work in process inventory is sum of Mat + Labour
Material = 18000 Units * 100% comlete*$2.75 = $49,500

Labour =  18000 Units * 60% complete*$4.25 = $45,900
The total cost assigned to the ending work in process inventory = Material + Labour
= $49,500 + $45,900
= $95,400

d.$95,400

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