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rathburn, inc. is a service firm that uses process costing. the firm the firm worked on a total of 1,000 cases this month. 800 of which were completedRathburn, Inc is a seevice firm that uses process costing. The firm worked on a total of 1,000 cases this momth, 800 of which were completed during the period. The remaining cases were 40% complete. The firm incurred $180,000 in direct lavor and manufacturing over head. costs during the period and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method? what was the total cost of cases still in process at the end of the period?
A. $16,800
B. $175,200
C. $17,520
D. $168,000

Respuesta :

Using the weighted average method   The total cost of cases still in process at the end of the period $16,800 Option A is correct

Under Weighted average method

Total cost incurred = $180,000 + $4800 = $184,800

Ending inventory = 1000- 800= 200

Equivalent unit of production = 800+200×40%

                                                  =880

Cost per equivalent unit of production = $184,800/880

                                                               $ 210 per case

So total cost of unit in process = (200× 40%)×210

                                                       $16,800

Each value in the data set is multiplied by a predefined weight before the final computation is completed when computing a weighted average. Divide the total cost of the products purchased by the quantity of units on hand to determine the weighted average cost. You'll need the entire quantity of initial inventory and recent acquisitions to calculate the cost of the things that are currently for sale.

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