Question

A manufacturing department has 50,000 EUP for units completed and transferred out and 4,500 EUP for units in ending inventory. Materials cost is $2.50 per EUP and labor and overhead cost is $3.75 per EUP. The total amount of ending work in process inventory is $ .

Answer 1

Answer:

$28,125

Explanation:

Data given in the question

Number of units completed and transferred out = 50,000

Ending inventory units = 4,500

Material cost per equivalent unit of production = $2.50

Labor and overhead cost per equivalent unit of production = $3.75

So, by considering the above information, the ending work in process inventory units is

= Ending inventory units × (Material cost per equivalent unit of production + Labor and overhead cost per equivalent unit of production)

= 4,500 × ($2.50 + 3.75)

= 4,500 × $6.25

= $28,125