Answer:
a- Cost of finished goods= $54000
b- Cost of ending wip =$17290
c- Cost of beginning and total= $71290
Explanation:
The question has three requirements mentioned as follows;
a- Determine the cost of goods transferred to finished goods inventory.
b- Determine the cost of the ending work-in-process inventory.
c- Determine the total cost of the beginning work-in-process inventory plus the current manufacturing costs?
The solutions to each requirement are as follows:
a- cost of finished goods?
The cost of finished goods (9000 units) includes all of the production cost per unit which in this question is $6.
So the cost of finished goods is =$6×9000
Cost of finished goods= $54000
b- cost of ending work -in-process inventory?
Ending work-in-process inventory are 3500 units of which 10% has been converted. This implies that ending work-in-process inventory would have consumed 100% material but 0% conversion cost since they are under process yet but 10% (i.e 3500×10%=350 units) of the work-in-process have been converted which means only 10% of the work-in-process inventory would have consumed total cost, therefore the cost of ending work-in-process would be:
cost of ending wip inventory= (3500×$4.80) + (350×$1.40)
Cost of ending wip =$17290
c- cost of beginning wip and current manufacturing cost?
Cost of beginning wip and current manufacturing cost would be the total cost of finished stock and ending work-in-process inventory (i.e adding answer of a and b)
cost = $54000+$17290
cost= $71290
