Simon Productions Company had a beginning work in process inventory totaling $6,000. During the current period, the company added materials costs of $12,300, labor cost of $14,500 and overhead of $18,200. Equivalent production was 12,000 units, and 9,000 units were completed and transferred to the finished goods inventory. Inventory costs would be determined using a unit cost of

Question

Quizplus · Accepted Answer

The unit cost is calculated by adding the beginning work in process inventory with the current period costs and dividing the total by the equivalent production. In this case, the calculation would be: ($6,000 + $12,300 + $14,500 + $18,200) / 12,000 = $4.25 per unit. Therefore, the best choice is C.

Simon Productions Company Had a Beginning Work in Process Inventory