Question

Charley Company’s Assembly Department has materials cost at $3 per equivalent unit and conversion cost at $3 per equivalent unit. There are 20300 units in ending work in process, all of which are 70% complete as to conversion costs and 70% complete as to materials. How much are total costs to be assigned to ending inventory? Entry field with incorrect answer
$103530.
$121800.
$42630.
$85260

Answer 1

Answer:

The answer is: $85,260

Explanation:

If there are 20,300 units in ending work in process that are 70% complete both in materials and conversion costs, they should be equivalent to 14,210 (= 20,300 x 70%) finished units.

Every finished unit has a materials cost of $3 and a conversion cost of $3 ($6 total cost per finished unit).

The ending inventory should have a total cost of: 14,210 x $6 = $85,260