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6 April, 14:40

Jimmy Company uses the weighted-average method in its process costing system. The ending work in process inventory consists of 9,000 units. The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $3.75 for material and $1.25 for labor and overhead, what is the balance of the ending work in process inventory account? Select one: a. $41,625 b. $33,750 c. $45,000 d. $31,500

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  1. 6 April, 15:09
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    The correct answer is A.

    Explanation:

    Giving the following information:

    The ending work in process inventory consists of 9,000 units.

    The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.

    The cost per equivalent unit for the period is $3.75 for material and $1.25.

    First, we need to calculate the ending inventory in units for equivalent units:

    Direct material = 9,000*1 = 9,000 units

    Conversion costs = 9,000*0.7 = 6,300

    Now, the cost of ending inventory:

    Direct material = 9,000*3.75 = 33,750

    Conversion costs = 6,300*1.25 = 7,875

    Total cost = $41,625
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