Question

Materials costs of $1026000 and conversion costs of $1354200 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 190000 units were started into production in September, and there were 10000 units in ending work in process that were 30% complete at the end of September.

What was the total amount of manufacturing costs assigned to the 10000 units in the ending work in process?

a) 54,000

b) 76,200

c) 38,400

d)22,200

Answer 1

--Correct Answer = Option [b] $ 76,200 will be for Ending WIP

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	10,000	$                      5.40	$          54,000.00
- Conversion	3,000	$                      7.40	$          22,200.00
Total cost of ending WIP				$              76,200.00

--Other workings

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	180,000	100%	180,000	100%	180,000
Units of ENDING WIP	10,000	100%	10,000	30%	3,000
Equivalent Units of Production			190,000		183,000
COST per EUP			Material		Conversion
Cost of Beginning WIP			$                          -		$                                                 -
Cost incurred during the period			$    1,026,000.00		$                            1,354,200.00
Total Costs		Costs	$    1,026,000.00	Costs	$                            1,354,200.00
Equivalent units of production		EUP	190,000	EUP	183,000
Cost per EUP			$              5.40000		$                                      7.40000