Answer:
Ending work in process inventory cost = $55,000
Explanation:
Given:
Material unit cost = $10
conversion cost = $30
Ending Work in progress = 2,500
conversion cost = 40% Completed
Ending work in process inventory cost = ?
Computation of ending Materials Cost:
Materials Cost = [(2,500 units × $10]
Materials Cost = $25,000
Computation of ending Conversion Cost:
Conversion Cost = [(2,500 units × 40%) × $30]
Conversion Cost = [(1,000) × $30]
Conversion Cost = $30,000
Ending work in process inventory cost = Materials Cost + Conversion Cost
Ending work in process inventory cost = $25,000 + $30,000
Ending work in process inventory cost = $55,000
