Answer: B .2899.20
Calculated as
Conversion cost = Direct labor + Manufacturing overhead
Direct labor cost = $215000
Direct labor hour rate = $10 per hour
Direct labor hours = $215000/10 = 21500 hours
Manufacturing overhead rate = $3 per direct labor hours
Manufacturing overhead = Direct labor hours x MOH rate
= 21500 x $3
= $64500
So Conversion cost = $215000+64500 = $279500
Further calculations are as following
Equivalent Units of Production (EUP)- Weighted Average Method | |||||
Units | % Materials | EUP—Materials | % Conversion | EUP—Conversion | |
Units completed and transferred out | 16500 | 100% | 16500 | 100% | 16500 |
Units of ending work in process | 300 | 100% | 300 | 40% | 120 |
Equivalent units of production | 16800 | 16620 | |||
Cost per Equivalent Unit of Production | |||||
Materials | Conversion | ||||
Beginning Wip | $ 1,300 | $ 2,400 | |||
Added to the process | $ 47,000 | $ 279,500 | |||
Total costs | Costs | 48300 | Costs | 281900 | |
÷ Equivalent units of production | EUP | 16800 | EUP | 16620 | |
Cost per equivalent unit of production (rounded to 2 decimals) | $ 2.88 | $ 16.96 | |||
Costs of ending work in process | |||||
EUP | Cost per EUP | Total cost | |||
Direct materials | 300 | $ 2.88 | $ 864.00 | ||
Conversion | 120 | $ 16.96 | $ 2,035.20 | ||
Total cost of ending work in process | $ 2,899.20 |
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