In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 40000 units and had 5000 units in ending work in process 20% complete. If all materials are added at the beginning of the process the total cost to be assigned to the ending work in process is

A) $8000.
B) $25000.
C) $28000.
D) $40000.

The total cost of the units transferred out is:
Total Cost = (Unit Materials Cost + Unit Conversion Cost) x Units Transferred Out
Total Cost = ($5.00 + $3.00) x 40,000
Total Cost = $320,000

To calculate the cost of the ending work in process, we first need to calculate the equivalent units of production:

Equivalent Units of Production = Units in Ending WIP x Percentage Complete + Units Transferred Out
Equivalent Units of Production = 5,000 x 20% + 40,000
Equivalent Units of Production = 41,000

The cost per equivalent unit is:

Cost per Equivalent Unit = (Unit Materials Cost + Unit Conversion Cost) / Equivalent Units of Production
Cost per Equivalent Unit = ($5.00 + $3.00) / 41,000
Cost per Equivalent Unit = $0.20

Therefore, the cost to be assigned to the ending work in process is:

Cost of Ending WIP = Cost per Equivalent Unit x Equivalent Units of Production x Percentage Complete
Cost of Ending WIP = $0.20 x 5,000 x 20%
Cost of Ending WIP = $2,000

So, the total cost to be assigned to the ending work in process is $2,000. Adding this to the cost of the units transferred out gives a total cost of $322,000. Therefore, the correct answer is C) $28,000.