In: Accounting
6.
LO 4 On December 31, Talley Company recorded the following information in the Grating Department's Work in Process Inventory account:
Units |
Cost |
|
---|---|---|
Beginning balance (80% complete) |
5,000 |
$ 56,000 |
Started into production |
115,000 |
$1,505,800 |
Completed and transferred to Assembly Department |
105,000 |
? |
Ending balance (60% complete) |
15,000 |
LO 4 Refer to question 6. What is the ending balance in the Work in Process Inventory account on December 31?
(a)
$123,300
(b)
$205,500
(c)
$195,300
(d)
$168,000
Weighted Average | Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. | ||||||
A1. | Quantities | Equivalent Units | |||||
Whole Units | Materials | ||||||
Units to be account for | |||||||
Work in Process, Beginning | 80% | 5000 | |||||
add:Started into production | 115000 | ||||||
-Total Units | 120000 | ||||||
Units accounted for | |||||||
Transferred out | 105000 | 105000 | |||||
Work in Process, Ending | 60% | 15000 | 9000 | 60% | |||
Equivalent Units-Weighted Average | 120000 | 114000 | |||||
A2. | Cost | ||||||
Materials | |||||||
Work in Process, Beginning | 56000 | ||||||
add:Started into production | 1505800 | ||||||
Total Cost to account for | 1561800 | ||||||
Equivalent Units | 114000 | ||||||
Unit Cost | Total Cost/Equivalent Units | 13.70 | |||||
2. | Cost accounted for | ||||||
Work in Process, Ending | Material | ||||||
Equivalent Units | 9000 | ||||||
Cost per Equivalent Unit | 13.70 | ||||||
-Total Cost Accounted For | 123300 | ||||||
Correct Answer is a). $123300