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kozerog [31]
3 years ago
13

Department A had no Work-in-Process at the beginning of the period, 1,000 units were completed during the period, 200 units were

50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the periodDM (1,[email protected]$10) $12,000DL 5,000Factory Overhead 4,400Assuming that all direct materials are placed in process at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period? A. $3,650B. $2,900C. $2,000D. $1,825
Business
1 answer:
statuscvo [17]3 years ago
5 0

Answer:

Materials total cost equal to 2,000 the correct option is C

C. $2,000

Explanation:

<u>Conversion Cost</u>

<u>conversion cost</u> = labor + overhead

CC = 5,000 + 4,400 = <u>9,400</u>

complete during the period   1,000 units

ending inventory                       200 units 50%

<u>Equivalent units:</u>

completed + ending worked portion

1,000 + 200 x 50% = 1,000 + 100 = <u>1,100</u>

CC equivalent unit cost  9,400/1,100 x 100 = 854.55

<u>Materials</u>

<u>Cost     $ 12,000</u>

<u>Equivalent units</u>

completed  1,000

ending          200 at 100%

completed + ending times added portion

1,000 + 200 x 100 % = 1,200

Equivalent unit cost: 12,000 / 1,200 = 10

Ending inventory 200 x 10 =         2,000

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