Charley Company's Assembly Department has materials cost at $3 per equivalent unit and conversion cost at $3 per equivalent unit. There are 20300 units in ending work in process, all of which are 70% complete as to conversion costs and 70% complete as to materials. How much are total costs to be assigned to ending inventory? Entry field with incorrect answer

$103530.

$121800.

$42630.

$85260

Question

Business

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26 November, 01:19

Charley Company's Assembly Department has materials cost at $3 per equivalent unit and conversion cost at $3 per equivalent unit. There are 20300 units in ending work in process, all of which are 70% complete as to conversion costs and 70% complete as to materials. How much are total costs to be assigned to ending inventory? Entry field with incorrect answer

$103530.

$121800.

$42630.

$85260

+4

Answers (1)

Know the Answer?

Roberto Osborne · Answer 1

The answer is: $85,260

Explanation:

If there are 20,300 units in ending work in process that are 70% complete both in materials and conversion costs, they should be equivalent to 14,210 ( = 20,300 x 70%) finished units.

Every finished unit has a materials cost of $3 and a conversion cost of $3 ($6 total cost per finished unit).

The ending inventory should have a total cost of: 14,210 x $6 = $85,260