Question

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Units MaterialsCosts Work in process at April 1 15,000 $ 8,000 Units started during April 60,000 $38,500 Units completed and transferred to next department during April 65,000 Using the average cost method, what is the materials cost of the work in process at April 30?

Answer 1

Answer:

$6,200

Explanation:

Beginning Work in progress     $15,000       $8,000

Units started                               $60,000      $38,500

Total process                              $75,000      $46,500

Less: Units transferred to tax    $65,000

Ending work in progress            $10,000

Average cost method material cost of work in progress = Material cost ÷ Total units

$46,500 ÷ $75,000

= $0.62

Material cost of work in progress = $0.62 × $10,000

= $6,200