Question

Oriole Company's Assembly Department has materials cost at $3 per unit and conversion cost at $7 per unit. There are 30300 units in ending work in process, all of which are 70% complete as to conversion costs. All materials are added at the beginning of the process. How much are total costs to be assigned to ending inventory?

Answer 1

Answer:

$239,370

Explanation:

The computation of the total cost assigned to the ending inventory is shown below:

= Material cost per unit × number of units in ending work in process + Conversion cost per unit × number of units in ending work in process× completion percentage

= $3 × 30,300 units + $7 × 30,300 units × 70%

= $90,900 + $148,470

= $239,370