Question

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

Answer 1

	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