In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00.The department transferred out 20,000 units and had 2,500 units in ending work in process 20% complete.If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Question

Quizplus · Accepted Answer

The total cost to be assigned to the ending work in process is the sum of the materials cost and the conversion cost. The materials cost is $5.00 per unit, and the conversion cost is $3.00 per unit. The ending work in process is 2,500 units, and it is 20% complete. This means that the materials cost has been added to the units, but only 20% of the conversion cost has been added. Therefore, the total cost to be assigned to the ending work in process is $5.00 + (0.20 x $3.00) = $5.60 per unit. The total cost to be assigned to the ending work in process is therefore 2,500 units x $5.60 per unit = $14,000.

In the Shaping Department of Rollins Company the Unit Materials