Answer:
c. $385,958.90
Explanation:
<em>Step 1 Determine the Total Cost Incurred for Both materials and Conversion </em>
<em>Raw Materials</em>
Opening Work In Process $200,000
Add Cost Added during the year $2,000,000
Total $2,200,000
<em>Conversion</em>
Opening Work In Process $200,000
Add Cost Added during the year $2,500,000
Total $2,700,000
<em>Step 2 Determine the total equivalent units for materials and conversion</em>
<em>Materials </em>
Closing work in process 100 × 100% = 100
Completed and Transferred (600+200-100)×100% =700
Total =800
<em>Conversion </em>
Closing work in process 100 × 30% = 30
Completed and Transferred (600+200-100)×100% =700
Total =730
<em>Step 3 Determine equivalent cost per unit of materials and conversion costs</em>
Materials = $2,200,000/800 = $2,750
Conversion = $2,700,000/730 = $3,699
<em>Step 4 Determine the cost assigned to Ending WIP</em>
Materials ($2,750×100) = $275,000
Conversion Cost ($3,699×30) = $110,970
Total =$385970
