The following information is provided by Sussman Company: $\begin{array}{|l|r|}
\hline \text { WIP inventory, January 1 } & 0 \text { units } \
\hline \text { Units started } & 15,000 \text { units } \
\hline \begin{array}{l}
\text { Units completed and } \
\text { transferred out }
\end{array} & 7,000 \text { units } \
\hline \text { WIP inventory, December 31 } & 8,000 \text { units } \
\hline \text { Direct materials } & \$ 23,500 \
\hline \text { Direct labor } & \$ 13,700 \
\hline \text { Manufacturing overhead } & \$ 11,000 \
\hline
\end{array}$ The units were 90% complete for materials and 40% complete for conversion costs.
How much are the total costs for which Sussman has to account (i.e.,its total costs to account for)?

Question

Quizplus · Accepted Answer

The total costs to account for include direct materials, direct labor, and manufacturing overhead. Therefore, the total costs are $23,500 (direct materials) + $13,700 (direct labor) + $11,000 (manufacturing overhead) = $48,200.

The Following Information Is Provided by Sussman Company The Units Were 90% Complete for Materials and 40% Complete