A shampoo manufacturer offers the following information:

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31,what is the total cost of units completed and transferred?

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.
On December 31,what is the total cost of units completed and transferred?

Quizplus · Accepted Answer

A)Material Conversion
Completed 19,200 19,200
End Inv.6,400 × 60% 3,840 @40 2,560
Total units 23,040 19,200
Costs 276,480 913,920 (585,000 + 328,920)
Unit costs $12.00 $42.00
Completed./ units 19,200 19,200
$230,400 $806,400 = 1,036,800

A Shampoo Manufacturer Offers the Following Information