Answer:
Materials total cost equal to 2,000 the correct option is C
C. $2,000
Explanation:
<u>Conversion Cost</u>
<u>conversion cost</u> = labor + overhead
CC = 5,000 + 4,400 = <u>9,400</u>
complete during the period 1,000 units
ending inventory 200 units 50%
<u>Equivalent units:</u>
completed + ending worked portion
1,000 + 200 x 50% = 1,000 + 100 = <u>1,100</u>
CC equivalent unit cost 9,400/1,100 x 100 = 854.55
<u>Materials</u>
<u>Cost $ 12,000</u>
<u>Equivalent units</u>
completed 1,000
ending 200 at 100%
completed + ending times added portion
1,000 + 200 x 100 % = 1,200
Equivalent unit cost: 12,000 / 1,200 = 10
Ending inventory 200 x 10 = 2,000
