Carnival Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$
$\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$ These units had all materials added but were only 60% completed for conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The total cost of ending work-in-process inventory is _____.

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Quizplus · Accepted Answer

The total cost of ending work-in-process inventory is calculated by adding the costs of direct materials and conversion costs for the units in process. For the 10,000 units in process, all materials were added, so the full material cost applies. The conversion costs, however, are only 60% complete.Direct materials cost for in-process units = $480,000 / (70,000 units + 10,000 units) * 10,000 units = $60,000Conversion costs for in-process units = $240,000 / 70,000 units * 10,000 units * 60% = $20,571.43 (rounded to the nearest cent for calculation purposes)Total cost of ending work-in-process inventory = $60,000 (materials) + $20,571.43 (conversion) = $80,571.43However, none of the provided options exactly match this calculation. Given the options and the methodology, it seems there might have been a mistake in the calculation or interpretation of the options. The correct approach involves allocating the costs based on the stage of completion, but without the exact breakdown or assuming a potential rounding or allocation method different from the standard, it's challenging to match the answer exactly to the provided options. Therefore, based on the standard calculation method, the closest correct option based on the provided calculation would be an estimation or a reconsideration of the calculation steps.

Carnival Company Manufactures Tape Dispensers 70,000\quad 70,00070,000 Started and in process 10,000\begin{array} { l l } \text { Started and in process } & 10,000 \end{array} Started and in process ​10,000​

Carnival Company Manufactures Tape Dispensers $\quad 70,000$ $\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$