Question

EB9.

LO 5.4Production data show 15,200 units were transferred out of a stage of production and 3,500 units remained in ending WIP inventory that was 100% complete to material and 60% complete to conversion. The unit material cost is $9 for material and $4 for conversion. What is the amount of inventory transferred out and remaining in ending work in process inventory?

Answer 1

The amount of inventory transferred out is 15,200 units, while the remaining inventory in the ending work in process (WIP) is 3,500 units.

Step-by-step explanation:

The amount of inventory transferred out is 15,200 units. This is the number of units that were completed and moved to the next stage of production. The remaining inventory in the ending work in process (WIP) is 3,500 units. This inventory is not yet completed and will require further work before it is transferred out.

Answer 2

Amount of inventory transferred=$197,600

Amount of inventory in work in process=$39,900

Step-by-step explanation:

Amount of inventory transferred=Number of units*cost per unit

cost per unit= material cost per unit+ conversion cost per unit

=$9+$4

=$13

Amount of inventory transferred=15,200*13=$197,600

Amount of inventory in work in process=3,500*9*100%+3,500*4*60%

=$39,900