During the month, 8,000 units of a product were completed and transferred out and 3,000 units were 1/3 complete at the end of the period. The direct material cost was $115.00 per unit and the combined labor and overhead cost was $227.00 per unit. What is the cost of the ending work in process?

Question

Quizplus · Accepted Answer

First, we need to calculate the cost of the units completed and transferred out:

Cost of completed units = 8,000 units x ($115 direct material cost + $227 labor and overhead cost) = $2,096,000

Next, we need to calculate the cost of the units that are 1/3 complete and still in process:

Cost of units in process = 3,000 units x 1/3 x ($115 direct material cost + $227 labor and overhead cost) = $342,000

Therefore, the cost of the ending work in process is $342,000. Option C is the correct answer.

During the Month, 8,000 Units of a Product Were Completed