Schiller Company has unit costs of $6 for materials and $15 for conversion costs.There are 4,200 units in ending Work in Process which are 25% complete as to conversion costs, and fully complete as to materials cost.How much is the total cost assignable to the ending Work in Process inventory if the FIFO method is used?

Question

Quizplus · Accepted Answer

The total cost assignable to the ending Work in Process inventory is calculated by adding the cost of materials and the cost of conversion. The materials cost is $6 per unit, and since the units are fully complete as to materials, the cost is 4,200 units * $6 = $25,200. The conversion cost is $15 per unit, but the units are only 25% complete, so the cost is 4,200 units * $15 * 25% = $15,750. The total cost is $25,200 + $15,750 = $40,950.

Schiller Company Has Unit Costs of $6 for Materials and $15