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Baron Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.

Beginning WIP Inventory: 11,000 Units
Transferred- in costs in beginning WIP Inventory: $113,200
Direct Materials cost in beginning WIP inventory: $27,500
Conversion costs in beginning WIP inventory: $27,750
Units transferred- in: 56,000 units
Transferred- in costs: $541,300
Units Completed: 52,000
Costs added: direct materials: $169,120
Costs added: conversion costs: $247,570
Ending WIP inventory: 15,000 Units

The total cost of units in ending WIP Inventory- Shaping would be closest to:_________

a. $270,450
b. $42,263
c. $42,255
d. $188,805

Respuesta :

Zviko

Answer:

a. $270,450

Explanation:

Total cost of units in ending WIP Inventory = Cost in Material + Cost In Conversion Costs

Cost in Material = Equivalent Units in Work In Process x Cost per Equivalent Unit in Materials

Cost in Conversion Costs = Equivalent Units in Work In Process x Cost per Equivalent Unit in Conversion Costs

The total cost of units in ending WIP Inventory- Shaping would be closest to a. $270,450

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