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 22,000 gallons of the drink, and the 2200 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
A)$3650.
B)$2408.
C)$1936.
D)$1450.

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 22,000 gallons of the drink, and the 2200 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
A)$3650. 
B)$2408. 
C)$1936. 
D)$1450.

Quizplus · Accepted Answer

The Answer of 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 22,000 gallons of the drink, and the 2200 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
A)$3650. 
B)$2408. 
C)$1936. 
D)$1450.

Sunnyside Orchards, a Juice Manufacturer, Uses a Process That Adds