At Panther Company,materials are added at the beginning of the process and conversion costs are added uniformly.

The total cost of units transferred out to Finished Goods Inventory is closest to

Question

At Panther Company,materials are added at the beginning of the process and conversion costs are added uniformly.

The total cost of units transferred out to Finished Goods Inventory is closest to

Quizplus · Accepted Answer

A)Trans in Materials Conversion
Units completed 43,000 43,000 43,000
End WIP 13,500 13,500 4,750 (13,500 × 35%)
Total units 56,500 56,500 47,750
Costs
Beg Inv.$94,000 $25,000 $25,400
Added 640,500 155,475 213,225
Total 734,500 177,975 238,625
Unit Costs $13.00 $3.15 $5.00
Completed units 43,000 43,000 43,000
$559,000 $135,450 $215,000 = $909,450

At Panther Company,materials Are Added at the Beginning of the Process