The following is an account for a production department, showing its costs for o
ID: 2516892 • Letter: T
Question
The following is an account for a production department, showing its costs for one month: Work In Process Inventory Beginning Balance Direct materials Direct labor Overhead Ending Balance $ 7,100 Completed and transferred out 54,510 23.300 17.900 12.500 $6.290 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $43.550, what was the cost of completing the units in the beginning Work in Process invento O $10.960 O $37.260 O $17 250 O s60,800 O $3860Explanation / Answer
The cost of completing the units in the beginning work in process inventory is $60800
Explanation:
* Equivalent production unit= beginning work in process+ started and completed unit cost+ closing
** cost per equivalent unit = Total cost/ equivalent unit
Particulars Amount Cost of beginning WIP inventory 7100 Equivalent production unit(7100+43550+6290) 56940 Cost per equivalent unit (60800/56940) 1.067791 beginning work in process inventory 60800Related Questions
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