Information for the current month for the Polishing Department is shown below. $\begin{array}{|l|c|c|}
\hline & \text { Direct Materials } & \text { Conversion Costs } \
\hline \text { Begining work in process inventory } & \$ 8,100 & \$ 10,525 \
\hline \text { Current month's costs } & \$ 31,240 & \$ 56,240 \
\hline \text { Ecuivalent units based on the FIFO costing gmethod } & 71,000 & 74,000 \
\hline {\text { Urits completech } 69,000} \
\hline \text { Units in ending work in process inventoty }-6,000 & & \
\hline
\end{array}$
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 80 percent complete. Determine the cost of ending work in process inventory.

Question

Information for the current month for the Polishing Department is shown below. $\begin{array}{|l|c|c|}
\hline & \text { Direct Materials } & \text { Conversion Costs } \
\hline \text { Begining work in process inventory } & \$ 8,100 & \$ 10,525 \
\hline \text { Current month's costs } & \$ 31,240 & \$ 56,240 \
\hline \text { Ecuivalent units based on the FIFO costing gmethod } & 71,000 & 74,000 \
\hline {\text { Urits completech } 69,000} \
\hline \text { Units in ending work in process inventoty }-6,000 & & \
\hline
\end{array}$
 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 80 percent complete. Determine the cost of ending work in process inventory.

Quizplus · Accepted Answer

To calculate the cost of ending work in process inventory, we need to consider both direct materials and conversion costs. Since direct materials are added at the beginning of the process, all units in ending work in process inventory would have received their direct materials. Therefore, the cost of direct materials for the ending work in process inventory is not directly calculated in this scenario because it's assumed to be fully added at the beginning.For conversion costs, we calculate the cost per equivalent unit and then apply it to the units in the ending work in process inventory based on their completion percentage.1. Calculate the total conversion costs:   Beginning work in process conversion costs: $10,525   Current month's conversion costs: $56,240   Total conversion costs: $10,525 + $56,240 = $66,7652. Calculate the cost per equivalent unit for conversion costs:   Equivalent units for conversion costs: 74,000   Cost per equivalent unit for conversion costs = Total conversion costs / Equivalent units   = $66,765 / 74,000   = $0.9025 per equivalent unit3. Calculate the conversion cost for the ending work in process inventory:   Units in ending work in process inventory: 6,000   Completion percentage for conversion costs: 80%   Equivalent units for conversion costs in ending inventory: 6,000 * 80% = 4,800   Conversion cost for ending work in process inventory = Equivalent units for conversion costs in ending inventory * Cost per equivalent unit   = 4,800 * $0.9025   = $4,332Since direct materials are added at the beginning, the entire cost of direct materials for the units in the ending work in process inventory would have been accounted for, and we only need to calculate the conversion costs, which are $4,332. However, none of the provided options match this calculation directly, suggesting a possible miscalculation or misunderstanding in the question's setup or the answer choices provided. Given the options and the typical approach to calculating ending work in process inventory costs, the closest or intended answer cannot be determined accurately from the provided calculations and options. This response is based on the standard method for calculating ending work in process inventory costs in cost accounting, but it appears there may be an error in the question or answer choices as presented.

Information for the Current Month for the Polishing Department Is