Kimbeth Manufacturing uses process costing to control costs in the manufacture o

Question

Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs. Costs pertaining to November are as follows: Beginning inventory direct materials $11,960, direct labor, $4 470; manufacturing overhead, $3,380. Costs incurred during the month direct materials, $104,000, direct labor, $40,560. manufacturing overhead, $86,320. What are the total costs in the ending Work-in-Process Inventory assuming Kimbeth uses first-in, first-out (FIFO) process costing? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

Explanation / Answer

Equivalent units:

On FiFO method, the total costs of Closing Work In Process = 10800 * $2 + 4800 * $2.58 = $33984

Particulars Units materials conversion costs opening WIP 8000 3200 (40%) 6400 (80%) Introduced and completed 38000 38000 38000 Transferred out 46000 closing WIP 12000 10800 (90%) 4800 (40%) Equivalent units 52000 49200 Cost during the month 104000 126880 Per unit $2 $2.58

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