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Kryger [21]
3 years ago
14

Williams Company computed its cost per equivalent unit for direct materials to be $1.80 and its cost per equivalent unit for con

version to be $3.44. A total of 381,000 units of product were completed and transferred out as finished goods during the month, and 29,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is:
Business
1 answer:
nasty-shy [4]3 years ago
7 0

Answer: $1,996,440

Explanation:

From the information that have been provided in the question, the following can be used to solve the question further:

Direct materials will be:

= 381,000 × $1.80

= $685,800

Conversion will be:

= 381,000 × $3.44

= $1,310,640

The amount that should be reported in Finished Goods Inventory will be:

= $685,800 + $1,310,640

= $1,996,440

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