Ch 14 15 16 6 Help Save I k in Process inventory and are 10

Ch 14, 15& 16 6 Help Save & I k in Process inventory and are 100% complete for materials and 75% complete for conversion. The equivalent costs per A com any uses the w e ghted-average method for inventory costing At the end ofthe period 22 0 units were in the endin wor unit are materials, $2 65 and conversion $5. 35. Compute the cost that would be assigned to the ending Work ih Pracess inventory for the period Multiplo Cholce

Solution

Q1. Answer is $ 146575 Explanation: Cost of ending WIP Material (22000*2.65) 58300 Conversion (22000*75% *5.35) 88275 Total cost of Ending WIP 146575 Q2. Answer is $ 4.55 Explanation: Total conversion cost (99000+726825) 825825 Divide: Total eq. units 181500 (165000+ 75% of 22000) Conversion cost per unit 4.55 Q3. Answer is 3000 units Explanation: Beginning WIP 200 Add: Started units 3200 Les: Ending WIP 400 Units completed and transferred out 3000 Q4. Answer is $ 196000 Explanation: Conversion cost per unit 3.92 Eq units of Units completed 50000 Conversion cost transferred 196000 Q5. Answer is All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods may not have been completed at a single time period.