Information for the current month for Process 3 is shown below. $\begin{array}{lrr}&\text { Direct Materials }&\text { Conversion Costs }\
\text { Beginning work in process } & \$ 3,600 & \$ 30 \
\text { Current month's costs } & 55,800 & 48,204 \
\text { Equivalent units based on the FIFO } & & \
\text { costing method } & 62,000 & 61,800
\end{array}$ Units completed-60,000
Units in ending work in process-6,000
Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 50 percent complete.The cost of ending work in process inventory totaled

Question

Quizplus · Accepted Answer

The cost of ending work in process inventory is $4,224.The equivalent units of production for conversion costs are 61,800. The units completed and transferred out of the process are 60,000. The units in ending work in process are 6,000. The units in ending work in process are 50 percent complete as to conversion costs. Therefore, the equivalent units of production for conversion costs in ending work in process are 3,000 (6,000 x 50%). The total equivalent units of production for conversion costs are 64,800 (61,800 + 3,000). The cost per equivalent unit for conversion costs is $0.74 ($48,204 / 64,800). The cost of conversion costs in ending work in process inventory is $2,220 ($0.74 x 3,000). The cost of direct materials in ending work in process inventory is $2,004 ($3,600 x 50%). The total cost of ending work in process inventory is $4,224 ($2,220 + $2,004).

Information for the Current Month for Process 3 Is Shown