Question

empe Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are added at the beginning of production. The total cost per equivalent unit in process in March was $5.80, consisting of $4.20 for materials and $1.60 for conversion. During the month, 9,000 units of product were transferred to finished goods inventory; on March 31, 3,500 units were in process, 10 percent converted. The company uses weighted average costing. (a) Determine the cost of goods transferred to finished goods inventory. $AnswerCorrect (b) Determine the cost of the ending work-in-process inventory. $AnswerIncorrect (c) What was the total cost of the beginning work-in-process inventory plus the current manufacturing costs? $AnswerIncorrect

Solution

Empe Manufacturing Company All Amounts in $ Units Transferred to Finished Goods 9000 Closing Work in Process 3500 Opening Work in Process 12500 Cost per equivalent unit in process 5.8 (a) Cost of Goods Transferred to Finished Goods Inventory = 52200 $ (b) Cost of Closing Work in Process Inventory = 3,500 X 10% X $ 5.80 = 2030 $ (c) Cost of Opening Work in Process Inventory = 12,500 X 5.80 = 72500 $