Question

Roberts Company manufactures phones in a two-department process that involves Assembly and Finishing. The Assembly Department reported the follow data for the past month:

Direct materials added                             $336,000

Direct labor                                                  460,800

Factory overhead                                        230,400

Total costs to account for                      $1,027,200

Units started                                                   80,000

Units completed and transferred                67,200

Units not complete                                        12,800

Units in beginning inventory                               0

The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs. The ending balance in Work-In-Process Inventory--Assembly is ________.

A) $140,160

B) $168,960

C) $862,848

D) $887,040

Answer 1

	Materials	Conversion
Units completed and transferred out	67200	67200
Work in process, ending:
12800 X 100%	12800
12800 X 75%		9600
Equivalent units of production	80000	76800
	Materials	Conversion
Work in process, beginning	0	0
Cost added during month	336000	691200
Total costs	336000	691200
Divide by Equivalent units of production	80000	76800
Cost per Equivalent unit	4.20	9.00
	Materials	Conversion	Total
Work in process, ending units	12800	9600
X Cost per Equivalent unit	4.20	9.00
Cost of ending work in process inventory	53760	86400	140160
Option A $140,160 is correct