Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used.
Assume the total conversion costs for the month are $78,400. What amount of conversion costs are attached to units in ending work in process inventory?
A) $8.960
B) $12,800
C) $10,814
D) None of the above

Question

Quizplus · Accepted Answer

The ending work in process inventory's conversion costs are calculated based on the percentage completion of those units. With 3,200 units at 40% completion, the conversion costs attached to these units would be 40% of the total conversion costs. Therefore, $78,400 * 40% = $31,360. However, the correct calculation should consider the total conversion costs and how they are allocated. The provided choices seem to misinterpret the calculation, but the closest approach to determining the conversion costs for the ending work in process would involve understanding the percentage completion and applying it correctly. Given the options and the data, none directly lead to a correct calculation based on the provided information, suggesting a potential misunderstanding in the calculation process. However, choosing the closest match or reevaluating the calculation method might be necessary.

Assume There Were 6,000 Units in Beginning Work in Process