Xtreme Sports makes baseball bats.The company buys wood as a direct material.The company's Shaping Department processes the bats, which are transferred to the Coating Department where a sealant is applied.The Shaping Department began manufacturing 20,000 Babe Ruth sluggers during the month of October.There was no beginning inventory. Costs in the Shaping Department for the month of October were: A total of 16,000 bats were completed and transferred to the Coating Department; the remaining 4,000 bats were still in the Shaping Process at the end of the month.All of the Shaping Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory. What is the cost of the work-in-process inventory in Xtreme Sports' Shaping Department at the end of October?

Question

Xtreme Sports makes baseball bats.The company buys wood as a direct material.The company's Shaping Department processes the bats, which are transferred to the Coating Department where a sealant is applied.The Shaping Department began manufacturing 20,000 Babe Ruth sluggers during the month of October.There was no beginning inventory. Costs in the Shaping Department for the month of October were:  A total of 16,000 bats were completed and transferred to the Coating Department; the remaining 4,000 bats were still in the Shaping Process at the end of the month.All of the Shaping Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory. What is the cost of the work-in-process inventory in Xtreme Sports' Shaping Department at the end of October?

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The Answer of Xtreme Sports makes baseball bats.The company buys wood as a direct material.The company's Shaping Department processes the bats, which are transferred to the Coating Department where a sealant is applied.The Shaping Department began manufacturing 20,000 Babe Ruth sluggers during the month of October.There was no beginning inventory. Costs in the Shaping Department for the month of October were:  A total of 16,000 bats were completed and transferred to the Coating Department; the remaining 4,000 bats were still in the Shaping Process at the end of the month.All of the Shaping Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory. What is the cost of the work-in-process inventory in Xtreme Sports' Shaping Department at the end of October?

Xtreme Sports Makes Baseball Bats