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In the Shaping Department of Oriole Company the unit materials cost is $4.00 and the unit conversion cost is $2.00. The department transferred out 8900 units and had 1700 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is___________-

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Final answer:

The total cost to be assigned to the ending work in process for Oriole Company's Shaping Department is $7,480, calculated by adding the full material cost and the 20% completed conversion costs of the ending inventory units.

Step-by-step explanation:

The question pertains to the calculation of total costs to be assigned to the ending work in process in the Shaping Department of Oriole Company. Since all materials are added at the beginning of the process, the material cost for the ending work in process inventory will be fully recognized. However, the conversion cost will only be recognized at the percentage that the ending work in process is complete, which is 20%.

To calculate the total cost, apply the following steps:

  1. Calculate the full material cost for the ending work in process inventory: 1700 units × $4.00/unit.
  2. Calculate the conversion cost recognized for the ending work in process inventory: 1700 units × $2.00/unit × 20% completion.
  3. Add both costs from steps 1 and 2 to find the total cost for the ending work in process inventory.

Step 1: 1700 units × $4.00/unit = $6,800 in material costs

Step 2: 1700 units × $2.00/unit × 20% = $680 in conversion costs

Add the costs from Step 1 and Step 2 to get the total costs for the ending work in process inventory.

Total cost = Material cost + Conversion cost = $6,800 + $680 = $7,480

Therefore, the total cost to be assigned to the ending work in process is $7,480.

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