Sundae's Sundries Uses the Weighted Average Method of Process Costing

question 116

Multiple Choice

Sundae's Sundries uses the weighted average method of process costing. The company's ending work in process inventory consisted of 8,000 units that were 80% complete. Materials are added at the beginning of processing. The direct materials cost per equivalent unit was $3.20, and the conversion cost per equivalent unit was $1.80. What is the amount of cost Sundae would assign to ending work in process inventory?

• A) $28,480
• B) $37,120
• C) $32,000
• D) $40,000

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Definitions:

Factory Lubricated

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U-joints

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NLGI Grade

A classification given by the National Lubricating Grease Institute indicating the consistency of lubricating grease.

Lithium-Based Grease

A lubricant made primarily of lithium soap which is known for its high resistance to heat and its use in automotive and industrial applications.