Question

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)

	Units
Work in process, November 1st		16,100
Started in production during November		101,000
Work in process, November 30th		24,100

The beginning inventory was 70% complete as to materials and 10% complete as to conversion costs. The ending inventory was 80% complete as to materials and 30% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $54,660; direct labor, $20,420; manufacturing overhead, $15,340.
Costs incurred during the month: direct materials, $469,000; direct labor, $183,880; manufacturing overhead, $392,160.

What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses weighted-average process costing?

Answer 1

--Total cost of ending WIP inventory = $ 133947.80 or $ 133948

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	19,280	$                      4.66	$          89,844.80
- Conversion	7,230	$                      6.10	$          44,103.00
Total cost of ending WIP				$            133,947.80

--Workings

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	93,000	100%	93,000	100%	93,000
Units of ENDING WIP	24,100	80%	19,280	30%	7,230
Equivalent Units of Production			112,280		100,230
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          54,660.00		$                                  35,760.00
Cost incurred during the period			$        469,000.00		$                                576,040.00
Total Costs		Costs	$        523,660.00	Costs	$                                611,800.00
Equivalent units of production		EUP	112,280	EUP	100,230
Cost per EUP			$              4.66388		$                                      6.10396