Question

Chen Corporation, a new company, adds material at the beginning of its production process; conversion

cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000

units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were:

materials, $15; conversion, $22.

59. The cost of the company's ending work-in-process inventory is:

A. $26,640.

B. $44,400.

C. $56,400.

D. $74,000.

E. some other amount.

Answer is C but need to see calculation please.

Answer 1

Option C is Correct ($56,400)

Cost of the company's ending work-in-process inventory=$56,400.

Step-by-step explanation:

Option C is Correct ($56,400)

Given:

Ending Work in process=2000 units

Conversion= $22

Material= $15

Completed units=15,000 units

Required:

Cost of the company's ending work-in-process inventory=?

Solution:

Material Cost= $15

Conversion Cost= $22 *60%

Conversion Cost= $13.2

Total Cost=Material Cost+Conversion Cost

Total Cost=$15+$13.2

Total Cost= $28.2

Cost of the company's ending work-in-process inventory=Ending Work in process*Total Cost

Cost of the company's ending work-in-process inventory=2000*28,2

Cost of the company's ending work-in-process inventory=$56,400.