Answered

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Department A had no Work-in-Process at the beginning of the period, 4,400 units were completed during the period, 540 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period: Direct materials (1,540 at $10) $ 15,400 Direct labor 32,173 Factory overhead 25,735 Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period

Sagot :

Answer:

the ending inventory is $8,748

Explanation:

The computation of the total cost of the departmental Work-in-Process Inventory at the end of the period is shown below:

Materials is $10 per unit

And, the conversion cost is

= ($32,173 + $25,735) ÷ (4,400 units + 540 units ÷ 2)

= $57,908 ÷ 4,670

= $12.4

Now the ending inventory is

= 540 units × $10 per unit + 270 units × $12.4

= $8,748

Hence, the ending inventory is $8,748

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