Answered

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Dandy's Dandelion Wine Assembly Department started the month of August with 12,400 units in beginning work in process
inventory that were 80% complete. During the month, 48,800 units were started into production, and at the end of the month, there
were 11,900 units in ending work in process inventory that were 60% complete. For the month, the department's total materials cost
was $183,600 and its total conversion cost was $112,880. All materials are added at the beginning of the process, while conversion
costs are incurred uniformly throughout the process. What is the total cost of goods in ending work in process inventory at the end of
the month?

Sagot :

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

How to calculate the ending inventory

Reconciliation of accounts

Beginning work in progress = $12400

Started into production = $48800

Less: Closing work in progress = $11900

Units completed = $49300

Calculation of equivalent units

Units completed = $49300

Ending WIP inventory = 11900 × 60% = $7140

Total conversion cost = $56440

Total material = 49300 + 11900 = 61200

Cost per equivalent units

Material = $183600/61200 = $3.00

Conversion cost = $112880/56440 = $2.00

Calculation of cost of ending inventory

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:

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