Osprey Corporation, a manufacturer of diabetic testing kits,
started November production with $150,000 in beginning inventory.
During the month, the company incurred $740,000 of materials cost
and $480,000 of labor cost. It applied $330,000 of overhead cost to
inventory. The company processed 17,000 total equivalent units of
product.
a. Assuming 4,000 equivalent units of product were in ending work
in process inventory, determine the amount of cost transferred from
the Work in Progress Inventory account to the Finished Goods
Inventory account. What was the cost of the ending work in process
inventory?
b. Assuming 12,000 equivalent units of product were transferred
from work in process inventory to finished goods inventory,
determine the cost of the ending work in process inventory. What
was the cost of the finished goods inventory transferred from work
in progress?
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