Information concerning the materials used in the Blending Department in November
ID: 2576097 • 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? A. $7,852 B. $8,280 C. $6,120 D. $7,317
Explanation / Answer
CALCULATION OF MATERIAL COST OF INVENTORY WORK IN PROGRESS Particualrs Units Amount Opening WIP Invent0ry 3,200.00 $ 13,200.00 Started During the year 8,400.00 $ 37,400.00 Total Inventory Cost $ 11,600.00 $ 50,600.00 Cost Per unit of WIP = $ 50,600 / $ 11,600 = $ 4.36 For 75% complete inventory = (A) $ 3.27 Not Rounded Closing WIP inventory = (B) $ 2,400.00 Closing WIP Value = (A X B) $ 7,852 (Rounded to nearest Dollar) Answer = Option A = $ 7852