Answer:
<em>Total value of beginning WIP:</em> 62,205.61
Explanation:
<em>"first-in, first-out method of inventory costing is used"</em>
From the current cost assing for the beginning WIP we will add the cost added to end this units.
<u>Equivalent units conversion cost:</u>
complete units: 11,000
work on beginning WIP inventory: 3,600 x 25% = (900)
work on ending WIP invenotry: 3,000 x 20% = <u> 600 </u>
Equivalent Units for Conversion Cost 10,700
<u>Conversion cost per unit: </u>63,000 labor + 25,000 overhead
Total 88,000
<em>Cost per equivalent units:</em> 88,000 / 10,700 = 8,22429 = 8.2243
<u>Beginning Inventory:</u>
Beginning Cost: 40,000
Conversion Cost added:
3,600 x 75% x 8.2243 = 22.205,6075
<em>Total value of beginning WIP:</em> 62,205.61