Anvl Company has two processing departments and uses a process costing system. H

Question

Anvl Company has two processing departments and uses a process costing system. Here are data regarding the work in process inventory of the second processing department for the month of June: Costs Units Transferred in Direct materials Conversion $4,000 $3,250 $10,200 $64,000 800 June 1 Transferred in Costs added during June 4,500 $17.200 $30.000 and transferred out 4,200 1,100 June 30 The units in ending work in process inventory are 100% complete with respect to direct materials and 50% complete with respect to conversion costs. What is the total cost of the units in ending work in process inventory? $23,650 $27,500 $26,701 $25,575 None of the above

Explanation / Answer

Equivalent unit :

Cost per equivalent unit of transferred in cost = (10200+64000)/5300 = 14

Cost per equivalent unit of material = (4000+17200)/5300 = 4

Cost per equivalent unit of conversion = (3250+30000)/4750 = 7

Cost of ending work in process inventory = (1100*14+1100*4+550*7) = $23650

So answer is a) $23650

Physical unit % EUP-material % EUP-conversion Unit transferred out 4200 100% 4200 100% 4200 Ending work in process 1100 100% 1100 50% 550 Total 5300 5300 4750

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