Beta uses process costing. It started the period with zero beginning inventory in WIP and Finished...

Beta uses process costing. It started the period with zero beginning inventory in WIP and Finished Goods inventory. It began work on 400 units during the period and incurred the following costs during the period. Direct materials are added at the beginning of the process followed by the conversion process.

Direct Material Costs: $128,000

Conversion Costs: $74,400

At the end of the period, the degree of completion of the 400 units for each cost category was as follows:

Direct Materials: 400 units were 100% completed

Conversion Costs: 175 units were 100% completed and transferred to Finished Goods inventory

225 units were 60% completed

10) Calculate the number of equivalent units for the Conversion Cost category.

11) Calculate the total (DM + Conversion Costs) manufacturing cost per finished unit.

12) Calculate the ending balance (in dollars ) of Work-in-Process (WIP) inventory.

13) Calculate the ending balance (in dollars ) of Finished Goods inventory.

Expert Solution

10
Units completed and transferred out	175
Ending work in process	135	=225*60%
Equivalent units for the Conversion Cost	310

11
	Direct Material	Conversion	Total
Costs incurred during the period	128000	74400
Equivalent units for the Conversion Cost	400	310
Cost per equivalent unit	320	240	560

Total manufacturing cost per finished unit = $560

12
	Direct Materials	Conversion	Total
Equivalent units in Work-in-Process (WIP) inventory	225	135
X Cost per equivalent unit	320	240
Ending balance Work-in-Process (WIP) inventory	72000	32400	104400

Ending balance (in dollars ) of Work-in-Process (WIP) inventory = $104400

13
	Direct Materials	Conversion	Total
Equivalent units in Finished Goods inventory	175	175
X Cost per equivalent unit	320	240
Ending balance Work-in-Process (WIP) inventory	56000	42000	98000

Ending balance (in dollars ) of Finished Goods inventory = $98000

ekkarill92 answered 2 years ago

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