Question

need help please

MegaRock produces quick setting concrete mix. Production of 200,980 tons was started in April, 190,680 tons were complete Material costs were $3,152,080 for the month while conversion costs were $591,400. There was no beginning work-in-process the ending work-in-process was 70% complete. What is the cost of the product that remains in work-in-process? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $606.200 $134,366

Answer 1

Solution

1) Calculation of cost of product that remain in work in process

Units in ending work in process = 200,980 tons - 190,680 tons = 10,300 tons

Equivalent unit of material = 190,680 + 10300 x 70% = 197,890 tons

Cost per equivalent unit of material = $3,15,2080/197,890 = $15.93

Cost of the product that remain in work in process = (10,300 x 70%) x $15.93 = $114,844.1

2) Calculation of cost to process 1400 receipts

The correct answer is b) $84

Labor cost = $ 41,000

Overhead cost = $ 55,000

Total cost = $ 96,000

Total processed receipts = 16,00,000

Cost to process per receipt = $ 96,000/16,00,000 = $0.06

Cost to process 1400 receipts = 1400 x $ 0.06 = $84

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