Question

Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What cost is assigned to ending work in process

Answer 1

Answer:

$114,000

Explanation:

The computation of the cost assigned to ending work in process is shown below:

= ending work in process × material equivalent cost + conversion cost × conversion equivalent cost

= 5,000 units × ($440,000 ÷ 20,000) + (5,000 × 20%) × ($64,000 ÷ (20,000 - 5,000 + (5,000 × 20%))

= 5,000 units × $22 + 1,000 units × $4

= $114,000

hence, the cost assigned to work in process is $114,000