Question

Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is $55,000. $100,000. $45,000. $75,000.

Answer 1

Ending work in process inventory cost = $55,000

Step-by-step explanation:

Given:

Material unit cost = $10

conversion cost = $30

Ending Work in progress = 2,500

conversion cost = 40% Completed

Ending work in process inventory cost = ?

Computation of ending Materials Cost:

Materials Cost = [(2,500 units × $10]

Materials Cost = $25,000

Computation of ending Conversion Cost:

Conversion Cost = [(2,500 units × 40%) × $30]

Conversion Cost = [(1,000) × $30]

Conversion Cost = $30,000

Ending work in process inventory cost = Materials Cost + Conversion Cost

Ending work in process inventory cost = $25,000 + $30,000

Ending work in process inventory cost = $55,000