Question

In: Accounting

6.   LO 4 On December 31, Talley Company recorded the following information in the Grating Department's...

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

Solutions

Expert Solution

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


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