Question

TryFit Co. uses process costing to account for the production of energy food bars. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $13,000 in materials and $10,000 in conversion costs. April costs were $42,000 for materials and $46,000 for conversion costs. During April 14,000 units were completed. Ending work in process inventory was 10,000 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to: (Round your intermediate calculations to four decimal places.) Multiple Choice $30,487.40 $37,654.00 $79,520.80 $46,454.00

Answer 1

Answer:

$37,654.00

Explanation:

beginning WIP = $13,000 + $10,000 = $23,000

costs added during the month = $42,000 + $46,000 = $88,000

total materials costs = $55,000

materials cost per EUP = $55,000 / 24,000 units = $2.29

total conversion costs = $56,000

conversion cost per EUP = $56,000 / 19,000 = $2.95

ending inventory = (10,000 x $2.29) + (10,000 x $2.95 x 50%) = $37,650