Note the following data:
The cost of ending WIP is closest to:

Question

Quizplus · Accepted Answer

To calculate the cost of ending WIP, we need to first calculate the costs incurred during the period. 
Materials added = Transferred-in + Direct materials added - Beginning WIP materials 
= $200,000 + $907,250 - $68,000 = $1,039,250

Conversion costs added = (Beginning WIP conversion + Transferred-in from department 1 + Conversion added) - Ending WIP conversion 
= ($146,200 + $1,600,000 + $542,000) - ($24,000 x 10%) = $2,230,800

Now, we can calculate the cost of ending WIP as:

Materials cost of ending WIP = $1,039,250 x 50% = $519,625 
Conversion cost of ending WIP = $2,230,800 x 10% = $223,080

Total cost of ending WIP = Materials cost of ending WIP + Conversion cost of ending WIP 
= $519,625 + $223,080 = $742,705

Therefore, the closest answer choice is C) $217,265.

Note the Following Data