Question

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

	Units
Work in process, November 1st		17,600
Started in production during November		116,000
Work in process, November 30th		25,600

The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 80% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $56,160; direct labor, $21,920; manufacturing overhead, $16,840.
Costs incurred during the month: direct materials, $484,000; direct labor, $198,880; manufacturing overhead, $407,160.
What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses weighted-average process costing? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

rev: 10_03_2018_QC_CS-141630

Multiple Choice

• $141,945.

• $140,921.

• $103,520.

• $140,785.

Answer 1

Correct answer----------$141,945.

Working

Reconciliation of Units
A	Beginning WIP	17,600
B	Introduced	116,000
C=A+B	TOTAL	133,600
D	Transferred out	108,000
E=C-D	Ending WIP	25,600

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	108,000			100%	108,000	100%	108,000
Ending WIP	25,600			80%	20,480	40%	10,240
Total	133,600			Total	128,480	Total	118,240

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 56,160	$ 38,760	$ 94,920
Cost incurred during period		$ 484,000	$ 606,040	$ 1,090,040
Total Cost to be accounted for		$ 540,160	$ 644,800	$ 1,184,960
Total Equivalent Units		128,480	118,240
Cost per Equivalent Units		$                   4.20	$                     5.45	$                9.66

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.20	20,480	$          86,102.71	108,000	$        454,057.29
Conversion cost	$ 5.45	10,240	$          55,841.95	108,000	$        588,958.05
TOTAL	$ 1,184,960	TOTAL	$ 141,945	TOTAL	$ 1,043,015