Sunnyside Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 14,000 gallons of the drink,and the 1,500 gallons left in ending WIP were 50% of the way through the process.
Costs incurred during the period were:

The cost assigned to ending work in process would be closest to

Question

Sunnyside Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 14,000 gallons of the drink,and the 1,500 gallons left in ending WIP were 50% of the way through the process.
Costs incurred during the period were:

The cost assigned to ending work in process would be closest to

Quizplus · Accepted Answer

C)Flavoring Vit/minerals Conversion
Costs $10,500 $7,500 $5,300
Completed 14,000 - 1500 = 12,500 12,500 12,500
Units End WIP 1,500 1,500 × 0 % 0 1500 × 50% 750
Equiv units 14,000 12,500 13,250
Per unit $0.75 $.0.60 $0.40
Ending WIP 1500 units × $0.75 = 1,250
1500 × 50% × $0.40 = 300
1,425

Sunnyside Orchards,a Juice Manufacturer,uses a Process That Adds Flavoring at the Beginning