Question

Please provide ALL calculations, I really need to understand this for my test tomorrow

Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,000 models. During the month, the company completed 11,100 models, and transferred them to the Distribution Department. The company ended the month with 2,300 models in ending inventory. There were 3,400 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing 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 $20,000 Conversion costs $11.200 Manufacturing costs added during the accounting period: Direct materials costs $71,000 Conversion costs $240,300 What is the cost assigned to ending inventory during October? (Round intermediary calculations to the nearest cent.) O A. $49,792 O B. $38,117 OC. $42,731 OD. $55,269

Answer 1

Equivalent unit of material = 10000

Equivalent unit of conversion = (3400*75%+7700+2300*55%) = 11515

Cost per equivalent unit of material = 71000/10000 = 7.10

Cost per equivalent unit of conversion = 240300/11515 = 20.87

Cost of ending WIP = (2300*7.1+1265*20.87) = 42731

So answer is c) $42731