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3 years ago

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

Mathematics

1 answer:

Salsk061 [2.6K]3 years ago

6 0

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

<h3>How to calculate the ending inventory</h3>

<u>Reconciliation of accounts</u>

Beginning work in progress = $12400

Started into production = $48800

Less: Closing work in progress = $11900

Units completed = $49300

<u>Calculation of equivalent units</u>

Units completed = $49300

Ending WIP inventory = 11900 × 60% = $7140

Total conversion cost = $56440

Total material = 49300 + 11900 = 61200

<u>Cost per equivalent units</u>

Material = $183600/61200 = $3.00

Conversion cost = $112880/56440 = $2.00

<u>Calculation of cost of ending inventory</u>

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.

Learn more about ending inventory on:

brainly.com/question/24868116

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