Respuesta :
Answer:
amount allocated to the work-in-process ending inventory $ 30,000
Explanation:
Spoilage is treated as abnormal loss.
Completed units of Finished goods = 5000 units (100% complete)
Abnormal loss units = 4000 units (100% complete as loss detected on completion)
Closing WIP units = 1000 units (100% complete in respect to material )
Total equivalent unit for material = 10,000 units
Total cost of material = $300,000
Material cost per equivalent unit = $ 30 per equivalent unit
Material cost in Closing WIP(1000 units @30) = $ 30,000
Answer:
The amount allocated to the work-in-process ending inventory is $30,000
Explanation:
For computing the allocated amount for ending work in progress, first, we have to compute the per unit cost which is shown below:
Per unit cost = (Total cost) ÷ (total number of units)
where,
Total cost is $300,000
And, the total number of units equal to
= Units started + spoiled units + ending work in progress units
= 5,000 units + 4,000 units + 1,000 units
= 10,000 units
The closing units is
= Total units - Units started - spoiled units
= 10,000 - 5,000 - 4,000
= 1,000 units
Now put these values to the above formula
So, the per unit would equal to
= $300,000 ÷ 10,000 units
= $30
So, the ending work in progress is
= Ending work in progress units × per unit
= 1,000 units × 30
= $30,000
