Williams Company computed its cost per equivalent unit for direct materials to be $1.90 and its cost per equivalent unit for conversion to be $3.85. A total of 245,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 26,000 equivalent units of direct materials and 26,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:

The amount that should be reported in ending Work in Process Inventory is:

=$149,500

Explanation:

Work-in-process inventory is materials that are unfinished or partially completed in a  production process.

Work in Process inventory = Direct materials cost+ conversion cost

  = (equivalent units of direct materials x direct material cost per unit) + (equivalent units of direct materials x conversation cost per unit )

=26,000 x $1.90 +  26,000 x $3.85

$49,400 + $100.100

=$149,500

The amount that should be reported in ending Work in Process Inventory is:

=$149,500