Information for the current month for Process 3 is shown below. $\begin{array}{|l|l|l|}
\hline& \text { Direct Materials } & \text { Conversion Costs } \
\hline \text { Beginining work in process } & \$ 3,600 & \$ 930 \
\hline \text { Current month's costs } & 55,800 & 48,204 \
\hline \text { Equivalent units based on the FIFO costingmethod } & 52,000 & \$ 1,800 \
\hline
\end{array}$ 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

Information for the current month for Process 3 is shown below. $\begin{array}{|l|l|l|} 
\hline& \text { Direct Materials } & \text { Conversion Costs } \
\hline \text { Beginining work in process } & \$ 3,600 & \$ 930 \
\hline \text { Current month's costs } & 55,800 & 48,204 \
\hline \text { Equivalent units based on the FIFO costingmethod } & 52,000 & \$ 1,800 \
\hline
\end{array}$ 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

Quizplus · Accepted Answer

The cost of ending work in process inventory is $4,224. The beginning work in process inventory is 30 percent complete as to conversion costs, so the equivalent units of production for conversion costs are 1,800 (6,000 units x 30%). The current month's conversion costs are $48,204, so the total conversion costs for the month are $48,204 + $930 = $49,134. The cost per equivalent unit for conversion costs is $49,134 / 1,800 = $27.30. The ending work in process inventory is 50 percent complete as to conversion costs, so the equivalent units of production for conversion costs are 3,000 (6,000 units x 50%). The cost of ending work in process inventory for conversion costs is 3,000 units x $27.30 = $81,900.

Information for the Current Month for Process 3 Is Shown