Question

Joplin Corporation produces syrups that it sells to candy makers. On November 1, it had no work-in-process inventory. It started production of 41,000 gallons of syrup in November and completed production of 38,000 gallons. The costs of the resources used by Joplin in November consist of the following:
  

Materials	$	89,100
Conversion costs (labor and overhead)		110,820

  

Required:

The production supervisor estimates that the ending work-in-process is 40 percent complete on November 30. Compute the cost of syrup completed and the cost of the syrup in work-in-process ending inventory as of November 30. (Do not round intermediate calculations.)

cost of syrup completed:

work in process ending inventory:

Answer 1

Solution assuming material is added in beginning of the process

cost of syrup completed:	$ 190,008
work in process ending inventory:	$ 9,912

Alternate answer assuming material is also 40% completed and is added during process.

cost of syrup completed:	$ 193,800
work in process ending inventory:	$ 6,120

Working

Reconciliation of Units
A	Opening WIP	-
B	Introduced	41,000
C=A+B	TOTAL	41,000
D	Transferred	38,000
E=C-D	Closing WIP	3,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	38,000			100%	38,000.0	100%	38,000
Closing WIP	3,000			100%	3,000.0	40%	1,200
Total	41,000			Total	41,000.0	Total	39,200

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 89,100	$ 110,820	$ 199,920
Total Cost to be accounted for		$ 89,100	$ 110,820	$ 199,920
Total Equivalent Units		41,000	39,200
Cost per Equivalent Units		$              2.17	$                     2.83

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 2.17	3,000	$             6,519.51	38,000	$ 82,580
Conversion cost	$ 2.83	1,200	$             3,392.45	38,000	$     107,427.55
TOTAL	$ 199,920	TOTAL	$ 9,912	TOTAL	$ 190,008

.

.

.

Working for alternate answer-

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	38,000			100%	38,000.0	100%	38,000
Closing WIP	3,000			40%	1,200.0	40%	1,200
Total	41,000			Total	39,200.0	Total	39,200

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 89,100	$ 110,820	$ 199,920
Total Cost to be accounted for		$ 89,100	$ 110,820	$ 199,920
Total Equivalent Units		39,200	39,200
Cost per Equivalent Units		$              2.27	$                     2.83

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 2.27	1,200	$             2,727.55	38,000	$ 86,372
Conversion cost	$ 2.83	1,200	$             3,392.45	38,000	$     107,427.55
TOTAL	$ 199,920	TOTAL	$ 6,120	TOTAL	$ 193,800