Question

The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIFO process costing system. All materials at Kittina are added at the beginning of the production process. Units Percent Complete Conversion costs Work in process, February 1 18,000 10 % Units started into production 160,000 Work in process, February 28 7,000 40 % On February 1, the work in process inventory account contained $55,620 of material cost and $123,120 of conversion cost. Cost per equivalent unit for February was $3.10 for materials and $7.50 for conversion costs. What total amount of cost should be assigned to the units in work in process on February 28

Answer 1

Answer:

ending work in process = $42,700

Explanation:

all materials added at the beginning of the process:

beginning work in process = 18,000

units started = 160,000

ending work in process = 7,000

equivalent units for materials = 160,000 + 7,000 = 167,000

conversion costs:

beginning work in process = 18,000 x 10%, so 90% added = 16,200

units started and transferred out = 160,000 - 7,000 = 153,000 x 100% = 153,000

ending work in process = 7,000 x 40% = 2,800

equivalent units for conversion costs = 16,200 + 153,000 + 2,800  = 172,000

ending work in process = 7,000 units

100% complete for materials = 7,000 x $3.10 = $21,700

40% complete for conversion costs = 2,800 x $7.50 = $21,000

total ending work in process = $42,700