At the start of November, Penco Refinery had Work in Process inventory consistin
ID: 2421406 • Letter: A
Question
At the start of November, Penco Refinery had Work in Process inventory consisting of 4,200 units that were 70 percent complete with respect to materials and 60 percent complete with respect to conversion costs. The cost of the units was $40,500 ($27,400 of material cost and $13,100 of labor and overhead). During November, the company started 43,200 units and incurred $410,400 of material cost and $392,000 of labor and overhead. The company completed 44,400 units during the month, and 3,000 units were in process at the end of November. The units in ending Work in Process were 80 percent complete with respect to materials and 40 percent complete with respect to conversion costs.
Calculate the cost of ending work in process
Info that I already solved-
Material cost per equivilant unit= $9.35
Conversion cost per equivilant unit= $8.88
Cost of items completed in November= 809412
Explanation / Answer
Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent mat Total Costs Opening WIP 4,200.00 100% 4,200.00 4,200.00 100% 4,200.00 Units started and completed(44,400-4,200) 40,200.00 100% 40,200.00 40,200.00 100% 40,200.00 Closing WIP 3,000.00 80% 2,400.00 3,000.00 40% 1,200.00 Equivalent Units 46,800.00 45,600.00 Current Month Costs 410,400.00 392,000.00 Opening WIP 27,400.00 13,100.00 Total Costs 437,800.00 405,100.00 Cost per Equivalent units 9.35 8.88 Ending WIP Equivalent Units 2,400.00 1,200.00 Ending WIP costs 22,451.28 10,660.53 33,111.81 Units completed 44,400.00 44,400.00 Cost of completed units 415,348.72 394,439.47 809,788.19
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