Answer:
The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797
Explanation:
Calculation of Equivalent Units of Production
<u>Materials </u>
Units transferred to the next department (5,800 × 100%) = 5,800
Units in ending Work In process (1,850 × 50%) = 925
Total Equivalent Units of Production for Materials = 6,725
<u>Conversion</u>
Units transferred to the next department (5,800 × 100%) = 5,800
Units in ending Work In process (1,850 × 20%) = 370
Total Equivalent Units of Production for Conversion Costs = 6,170
Calculation of Cost per Equivalent units of Production
Materials
Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials
= ($ 8,700 + $ 91,000) ÷ 6,725
= $14.825
Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials
= ($ 8,500 + $ 126,300) ÷ 6,170
= $21.848
Calculation of cost of ending work in process inventory
Materials ( 925 × $14.825) = $13,713.12
Conversion Cost ( 370 × $21.848) = $8,083.76
Total = $21,796.88
Thus,
The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797.
