Strap Company Uses the Weighted-Average Method in Its Process Costing

Multiple Choice

Strap Company uses the weighted-average method in its process costing system.The company has only one processing department.The ending work-in-process inventory consists of 10,000 units,60% complete with respect to materials.The total dollar value of this inventory is $38,000.The costs per equivalent unit are $5.00 for materials and $4.00 for conversion costs for the period.With respect to conversion costs,what is the ending work-in-process inventory?

A) 10% complete.
B) 20% complete.
C) 38% complete.
D) 30% complete.(38,000 - 30,000) /$4/EU = 2,000 EU for conversion costs therefore 2,000/10,000 = 20% complete