A shampoo manufacturer offers the following information:

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
What is the total cost of units in ending WIP?

Question

A shampoo manufacturer offers the following information:

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
What is the total cost of units in ending WIP?

Quizplus · Accepted Answer

C)
Material Conversion
Completed 19,200 19,200
End Inv.6,400 × 60% 3,840 @40 2,560
Total units 23,040 21,760
Costs 276,480 913,920 (585,000 + 328,920)
Unit costs $12.00 $42.00
End inv./ units 3,840 2,560
$46,080 $107,520 = 153,600

A Shampoo Manufacturer Offers the Following Information