Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 15,000 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 $4.40 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)

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Business

Catherine Melendez

16 September, 14:52

Jimmy Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 15,000 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 $4.40 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)

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Kayley Cabrera · Answer 1

Process costing is a methods used to measure manufacturing costs for bulk products. It include the weighted-average method for the calculation of Manufacturing costs. Equivalent units of Manufacturing are used for the calculation of production costs.

Total Number of units = 15,000 units

Equivalent Unit of production

In respect of material = 15,000 x 100% = 15,000 units

In respect of Labor = 15,000 x 80% = 12,000 units

Cost of Equivalent units

Material Cost = 15,000 x $4.40 = $66,000

Labor cost = 12,000 x 1.60 = $19,200

As the direct material and labor are charged to Work in process account on the basis of their completion percentage.

The balance of Work in process = $66,000 + $19,200 = $85,200