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		17,500
Started in production during November		115,000
Work in process, November 30th		25,500

The beginning inventory was 70% complete as to materials and 10% complete as to conversion costs. The ending inventory was 90% complete as to materials and 30% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $56,060; direct labor, $21,820; manufacturing overhead, $16,740.
Costs incurred during the month: direct materials, $483,000; direct labor, $197,880; manufacturing overhead, $406,160.

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

Multiple Choice

• $138,079.

• $135,784.

• $100,050.

• $135,779.

Answer 1

Correct answer------------$138,079.

Working

Reconciliation of Units
A	Beginning WIP	17,500
B	Introduced	115,000
C=A+B	TOTAL	132,500
D	Transferred out	107,000
E=C-D	Ending WIP	25,500

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	107,000			100%	107,000	100%	107,000
Ending WIP	25,500			90%	22,950	30%	7,650
Total	132,500			Total	129,950	Total	114,650

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 56,060	$ 38,560	$ 94,620
Cost incurred during period		$ 483,000	$ 604,040	$ 1,087,040
Total Cost to be accounted for		$ 539,060	$ 642,600	$ 1,181,660
Total Equivalent Units		129,950	114,650
Cost per Equivalent Units		$                   4.15	$                     5.60	$                9.75

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 4.15	22,950	$          95,201.44	107,000	$        443,858.56
Conversion cost	$ 5.60	7,650	$          42,877.37	107,000	$        599,722.63
TOTAL	$ 1,181,660	TOTAL	$ 138,079	TOTAL	$ 1,043,581