1 The mixing department has 20000 units and 52000 in costs for which account of

ID: 2376485 • Letter: 1

Question

1 The mixing department has 20000 units and

52000 in costs for which account of the 20000

units, 15000 were completed and transferred to

the next department. the 6000 remaining were

20% complete for conversion costs. direct materials

are added at the begin of the process and the conversion

costs are added evenly throughout the process. the cost

per equivalent unit is 2 for driect materials and 0.75

for conversion costs. the total cost of ending WIP is ?

Please show me how to do it step by step, the anser is (12900)

I need to know who to get this. Thank you.

COST OF ENDING WIP

ENDING STOCK = 6000 UNITS

COMPLETED MATERIAL COST = 2

COMPLETED CONVERSION COST = 0.75*20% = 0.15

TOTAL COMPLETED COST = 2.15

COST OF ENDING WIP = 2.15*6000

=$ 12900

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