Asked by Abigail Small on Jun 15, 2024
Verified
In the month of April a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $60000 of materials costs and $45000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April 10000 units were completed and transferred to the finished goods inventory and there were 2000 units that were 25% complete in the ending work in process inventory on April 30. During April manufacturing costs charged to the department were: Materials $1380000; Conversion costs $1530000. The cost assigned to the units in the ending work in process inventory on April 30 was
A) $360000.
B) $315000.
C) $240000.
D) $435000.
Conversion Costs
Refers to the combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.
Manufacturing Costs
Costs that are directly associated with the manufacturing of products, including raw materials, workforce expenses, and indirect costs.
Work in Process
Inventories that are currently in the production process and have not yet reached the final stage to be classified as finished goods.
- Understand the computation of costs assigned to units in beginning and ending work in process inventory.
- Calculate the total manufacturing costs charged to units transferred to finished goods.
Verified Answer
Learning Objectives
- Understand the computation of costs assigned to units in beginning and ending work in process inventory.
- Calculate the total manufacturing costs charged to units transferred to finished goods.
Related questions
A Department Adds Materials at the Beginning of the Process \(\begin{array} ...
Materials Costs of $600000 and Conversion Costs of $642600 Were ...
Materials Costs of $1200000 and Conversion Costs of $1530000 Were ...
The Following Data Has Been Provided by Glasco Inc ...
The Cost of Ending Work in Process Inventory in the ...