The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. The cost of the ending Work-in-Process Inventory is:

Question

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.  The cost of the ending Work-in-Process Inventory is:

Quizplus · Accepted Answer

To find the cost of the ending Work-in-Process Inventory, we need to use the FIFO costing method.

Units completed in April = 7,000 
Cost per unit for direct materials = $0.50 
Direct labor cost per unit = $0.20 
Manufacturing overhead cost per unit = $0.30

Total cost per unit = $0.50 + $0.20 + $0.30 = $1.00

Total cost of units completed in April = 7,000 x $1.00 = $7,000

Cost of the 400 units in ending Work-in-Process Inventory:

Units in ending Work-in-Process Inventory = 400 
Direct materials cost for 400 units = 400 x $0.50 = $200 
Direct labor cost for 400 units = 400 x $0.20 = $80 
Manufacturing overhead cost for 400 units = 400 x $0.30 = $120

Total cost of 400 units in ending Work-in-Process Inventory = $200 + $80 + $120 = $400

Therefore, the cost of the ending Work-in-Process Inventory is $400, which corresponds to choice (B).

The Debits to Work-In-Process for Department #2 for the Month