Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the
ID: 2345389 • Letter: K
Question
Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May:
Units
Beginning work in process inventory......... 16,500
Started into production during May........... 105,000
Completed during May............................ 97,000
Ending work in process inventory............. 24,500
The beginning work in process inventory was 70% complete with respect to materials and 25% complete with respect to conversion costs. The ending work in process inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The costs were as follows:
Materials Conversion
Beginning work in process inventory.... $54,610 $35,610
Costs incurred during May.................. $468,500 $574,540
Using the FIFO method, the total cost of units in the ending work in process inventory is closest to?
$133,938
$123,382
$144,281
$138,903
(((((((((show work please)))))))))))
Explanation / Answer
units
equivalent units
materials conversion costs
completed
97000
97000
97000
ending wip
24,500
20825
7350
(24500*.85 and 24500*.3)
beginning wip
16500
11550
4125
(16500*.7 and 16500*.25)
Work for this month
106275
100225
(compeleted + ending - beginning)
costs incurred this month:
468,500
574,540
cost per EU:
4.408375
5.732502
(costs incurred this month/work for this month)
ending WIP:
EU
cost per EU
Costs
materials
20825
4.408375
91804.4
(EU*cost per EU)
conversion costs
7350
5.732502
42133.89
total
133938.3
answer: $133,938
units
equivalent units
materials conversion costs
completed
97000
97000
97000
ending wip
24,500
20825
7350
(24500*.85 and 24500*.3)
beginning wip
16500
11550
4125
(16500*.7 and 16500*.25)
Work for this month
106275
100225
(compeleted + ending - beginning)
costs incurred this month:
468,500
574,540
cost per EU:
4.408375
5.732502
(costs incurred this month/work for this month)
ending WIP:
EU
cost per EU
Costs
materials
20825
4.408375
91804.4
(EU*cost per EU)
conversion costs
7350
5.732502
42133.89
total
133938.3
answer: $133,938
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.