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30 June, 14:33

Bonita Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 30900 units in ending work in process, all of which are 70% complete as to conversion costs. All materials are added at the beginning of the process. How much are total costs to be assigned to ending inventory

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  1. 30 June, 15:28
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    Answer: $296,640

    Explanation:

    Total Cost assigned to inventory

    Calculation

    The Materials cost $4 per unit * 30,900 units = $123,600

    Conversion cost = $8 * per unit * 30,900 units = $247,200

    Completion Rate

    $247,200 * 70 / 100=$173,040

    Total Costs

    = $123,600 + $173,040 = $296,640
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