Process inventory in the molding department


Problem: Rariton Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

Percentage
Units complete
Beginning work in process inventory 4,800    60%
ransferred in from the prior
department during January 78,000
Completed and transferred to the next
department during January 80,900
Ending work in process inventory 1,900    40%

The Molding Department's production report indicates that the cost per equivalent unit for conversion cost for January was $5.37. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

A)    $4,081.20
B)    $10,203.00
C)    $10,310.40
D)    $6,121.80

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Accounting Basics: Process inventory in the molding department
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