Percentage of Completion Question Managerial Accounting Need Help

Question

Jimmy Corporation uses the weighted average method in its process costing system. The ending work in process inventory consists of 9,500 units. The ending work in process inventory is 100% complete with respect to materials. The cost per equivalent unit is $3.75 for material and $1.25 for conversion cost. If the ending balance of work in process inventory account is $41,625, what is the percentage of completion with respect to conversion cost in the ending work in process inventory account?

A) 14% B) 86% C) 51% D) 63% E) None

Answer was 51% but I need help with steps as to how.

Answer 1

it was given that "The ending work in process inventory consists of 9,500 units. The ending work in process inventory is 100% complete with respect to materials"

 

it was given that "The cost per equivalent unit is $3.75 for material"

 

these two facts mean that the material cost of the in process inventory is 9500 x 3.75 = $35,625

 

subtracting that number from $41,625 will give us the dollar value of the conversion costs = $6,000

 

it was given that "The cost per equivalent unit is $1.25 for conversion cost"; thus $6,000 ÷ 1.25 = number of units = 4,800

 

4800 ÷ 9500 ≅ 51%