Asked by Vaishnavi Surnis on Jul 11, 2024
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Materials Conversion Cost Work in process, beginning $8,000$6,000 Current added during January $40,000$32,000 Equivalent units of production 100,00095,000 Cost per equivalent unit $0.48$0.40 Units completed and transferred to the next department 90,000 units Work in process, ending 10,000 units \begin{array} { | l | l | l | } \hline & \text { Materials } & \text { Conversion Cost } \\\hline \text { Work in process, beginning } & \$ 8,000 & \$ 6,000 \\\hline \text { Current added during January } & \$ 40,000 & \$ 32,000 \\\hline \text { Equivalent units of production } & 100,000 & 95,000 \\\hline \text { Cost per equivalent unit } & \$ 0.48 & \$ 0.40 \\\hline \begin{array} { l } \text { Units completed and transferred to the next } \\\text { department }\end{array} & 90,000 \text { units } & \\\hline \text { Work in process, ending } & 10,000 \text { units } & \\\hline\end{array} Work in process, beginning Current added during January Equivalent units of production Cost per equivalent unit Units completed and transferred to the next department Work in process, ending Materials $8,000$40,000100,000$0.4890,000 units 10,000 units Conversion Cost $6,000$32,00095,000$0.40 Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. What cost would be recorded for the ending work in process inventory?
A) $8,800.
B) $4,400.
C) $6,800.
D) $3,400.
Conversion Costs
Combined costs of direct labor and manufacturing overheads, representing expenses required to convert raw materials into finished goods.
Equivalent Units
A concept in cost accounting used to allocate costs to partially completed goods in process costing environments, treating them as if they were whole units.
Process Costing
An accounting method used to allocate costs to units of product in continuous, homogeneous production processes.
- Compute and elucidate the aggregate expense allocated to the final work in process and units completed.
Verified Answer
Learning Objectives
- Compute and elucidate the aggregate expense allocated to the final work in process and units completed.
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