Answer :
The cost at the end of process = $2,645
Explanation :
As per the data given in the question,
Direct material Conversion cost
Particulars I/P Particulars O/P % Units % Units
Opening WIP 1,000 Units completed 1,000 0% 0 40% 400
Units introduced 4,000 units completed 3,500 100% 3,500 100% 3,500
Closing WIP 500 100% 500 40% 200
Total 4,000 4,100
The I/P = Input
O/P = Output
Particulars Cost Equivalent unis Cost per unit
Direct material $8,200 4,000 $2.05 ($8,200 ÷ 4,000)
Conversion costs $33,210 4,100 $8.10 ($33,210 ÷ 4,100)
(Conversion cost = 28,700 + 4,510 = 33,210)
Particulars Units completed Closing WIP
Direct material $14,175 $1,025
(500 units × $2.05)
Conversion costs $28,350 $1,620 (3,500 units × $8.10) (200 units × $8.10)
Total $42,525 $2,645
(Direct material Units completed = 3,500*2.05+7,000 = 14,175)