Question

cost assigned to ending inventory

Jane industries manufactures plastic toys. During October Lane's Fabrication Department started work on 10 000 models. During the month, the company completed 11,400 models, and transferred them to the Distribution Department company ended the month with 2 200 models in ending Inventory. There were 2,700 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformy throughout the production process. The FIFO method of process conting is being followed. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 55% complete as to conversion costs Beginning inventory Direct materials costs $20.00 Conversion costs $11,200 Manufacturing costs added during the accounting period Direct materials costs $70,400 Conversion costs $240.400 What is the cost assigned to ending inventory during October (Round inemediary calculations to the nearestent) O A $37509 OB 18.521 OC. $46,393 OD 338,581

Answer 1

		Physical units	Direct Material	Conversion
	Beginning	2700
	Started and completed	10900
	To account for	13600
	Completed and transferred out
	Beginning=($2700*75%)	2700		2025
	Started and completed(11400-2700)	8700	8700	8700
	Ending Work in process	2200	2200	1210
	Equivalent units=(A)	13600	10900	11935
	Cost added in current period=(B)		$          70,400.00	$    2,40,400.00
	Price per Equivalent units=(C )=(B)/(A)		$                    6.46	$                20.14
Ans (D)	Ending Work in Process=(2200*$6.46),(1210*$20.14)	$               38,581.52	$          14,209.17	$       24,372.35