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

Respuesta :

Answer:

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

Inventory, often known as stock, refers to the items and materials that a company keeps on hand with the intention of reselling, producing, or using them. Inventory management is largely concerned with defining the shape and location of stocked products.

The correct answer is A.  $41,625  

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.

Calculation of the ending inventory:

Direct material= [tex]9,000\times1[/tex]= 9,000 units

Conversion costs=[tex]9,000\times0.7[/tex]= 6,300

Now, the cost of ending inventory:

Direct material= [tex]9,000\times3.75[/tex]= 33,750

Conversion costs= [tex]6,300\times1.25[/tex]= 7,875

Total cost= $41,625

To know more about the calculation of the ending inventory, refer to the link below:

https://brainly.com/question/25015918