Question

Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in process inventory was: Select one: a. $145,000. b. $116,500. c. $101,500. d. $78,500.

Answer 1

Correct answer-------------(b) $116,500

Working

Statement of Equivalent Units(Weighted average)
			Material	Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Ending WIP	20,000			100%	20,000	70%	14,000
Total	20,000			Total	20,000	Total	14,000

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 2.50	20,000	$   50,000.00
Conversion	$ 4.75	14,000	$   66,500.00
TOTAL	$ 116,500	TOTAL	$ 116,500