Slurpy produces soft drinks and sodas.Production of 100,000 liters was started in February,85,000 liters were completed.Material costs were $38,220 for the month while conversion costs were $16,380.There was no beginning work-in-process;the ending work-in-process was 40% complete.What is the cost of the product that remains in work-in-process?

Question

Quizplus · Accepted Answer

The ending work-in-process is 15,000 liters (100,000 started - 85,000 completed) and is 40% complete. The total cost is $54,600 ($38,220 material + $16,380 conversion). The cost per liter is $0.546 ($54,600/100,000 liters). The cost of the work-in-process is 15,000 liters * 0.40 * $0.546 = $3,600.

Slurpy Produces Soft Drinks and Sodas