In the Shaping Department of Jenkins Company the unit materials cost is $2.50 and the unit conversion cost is $1.50.The department transferred out 8,000 units and had 2,000 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 $2.50 per unit, and all materials are added at the beginning of the process. Therefore, the materials cost for the 2,000 units in ending work in process is $2.50 * 2,000 = $5,000. The conversion cost is $1.50 per unit, and the ending work in process is 20% complete. Therefore, the conversion cost for the 2,000 units in ending work in process is $1.50 * 2,000 * 0.20 = $600. The total cost to be assigned to the ending work in process is $5,000 + $600 = $5,600.

In the Shaping Department of Jenkins Company the Unit Materials