Question

Dandy's Dandelion Wine Assembly Department started the month of August with 12,400 units in beginning work in process

Answer 1

The total cost of the goods that are in the ending inventory will be $49980.

How to calculate the ending inventory

Reconciliation of accounts

Beginning work in progress = $12400

Started into production = $48800

Less: Closing work in progress = $11900

Units completed = $49300

Calculation of equivalent units

Units completed = $49300

Ending WIP inventory = 11900 × 60% = $7140

Total conversion cost = $56440

Total material = 49300 + 11900 = 61200

Cost per equivalent units

Material = $183600/61200 = $3.00

Conversion cost = $112880/56440 = $2.00

Calculation of cost of ending inventory

Material = 11900 × $3 = $35700

Conversion cost = 7140 × $2 = $14280

Total cost of ending inventory = $49980

In conclusion, the total cost of ending inventory is $49980.

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