Information concerning the materials used in the Blending Department in November
ID: 2472728 • Letter: I
Question
Information concerning the materials used in the Blending Department in November is as follows:
Units
Materials Costs
Work in Process, November 1
3,200
$13,200
Units started during November
8,400
37,400
Units completed and transferred to next department
during November
9,200
Work in Process, November 30
2,400
If the ending work-in-process inventory is 75% complete, using the average cost method, what was the materials cost in Work in Process at November 30?
Select one:
a. $7,852
b. $8,280
c. $6,120
d. $7,317
Units
Materials Costs
Work in Process, November 1
3,200
$13,200
Units started during November
8,400
37,400
Units completed and transferred to next department
during November
9,200
Work in Process, November 30
2,400
Explanation / Answer
b. $8,280 Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Opening WIP 3,200.00 100% 3,200.00 Units started and completed(8,400- 2,400) 6,000.00 100% 6,000.00 Closing WIP 2,400.00 75% 1,800.00 Equivalent Units 11,000.00 Opening WIP Costs 13,200.00 Current Month Costs 37,400.00 Total Costs 50,600.00 Cost per Equivalent units 4.60 Cl WIP Units 1,800.00 Cost of closing WIP 8,280.00