Question

Department A completed and transferred to finished goods a total of 60,000 units. Their ending inventory consisted of 40,000 units which were 80% complete with respect to direct materials and 30% complete with respect to conversion cost. The cost per EUP for direct materials is $4.00 and for conversion is $3.50. The cost of ending work in process inventory is $ .

Answer 1

Answer:

$170,000

Explanation:

As for the information provided:

Total ending inventory work in progress = 40,000 units

The units are 80% complete in terms of raw material.

Raw material cost = 40,000 $\times$ $4 $\times$ 80% = $128,000

Conversion cost = 40,000 $\times$ $3.5 $\times$ 30% = $42,000

Total cost incurred till date on work in progress in ending inventory = $170,000