A company that uses process costing has 1,000 units in ending Work in Process Inventory that are 100% complete with respect to materials and 80% complete with respect to conversion costs. The cost per unit for inventory is $2.15 for materials and $1.65 for conversion costs. What is the cost assigned to the ending Work in Process inventory?

Question

Quizplus · Accepted Answer

The cost assigned to the ending Work in Process inventory is calculated by adding the cost of materials and the cost of conversion. Materials cost is 1,000 units * $2.15 = $2,150. Conversion cost is 1,000 units * 80% * $1.65 = $1,320. Total cost = $2,150 + $1,320 = $3,470.

A Company That Uses Process Costing Has 1,000 Units in Ending