Latrec Ltd. uses a process costing system and reported an opening work in process inventory of 8,500 physical units (65% complete with respect to conversion). During the period 12,500 units were started. Ending work in process inventory was 50% complete for conversion with 4,000 physical units. All direct materials are added at the beginning of the process. Costs for the month include beginning work in process inventory of $20,450 for direct materials and $24,800
for conversion. Costs added during the current period were $52,000 for direct materials and $34,490 for conversion. Assuming a weighted average system, what dollar value would be reported as total Ending Inventory? Round all equivalent unit costs to four decimal places.
Weighted average method
Statement of equivalent production
MATERIAL conversion costs
IN OUT % COMPLETE EQUIVALENT UNITS % COMPLETE EQUIVALENT UNITS
OPENING WORK IN PROGRESS 8500 COMPLETED PRODUCTION 17000 100% 17000 100% 17000
UNITS INTRODUCED 12500 CLOSING ...
This solution helps with management accounting problems. The weighted average system is assumed to determine the dollar value.