Question

Last month, Bergen Incorporated’s Fabrication Department had 5,800 units in beginning work in process inventory that were 70% complete. These units had $24,012 of materials cost and $24,766 of conversion cost. All materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. Over the course of the month, 12,200 units were completed and transferred to Finished Goods Inventory. At the end of the month, there were 4,900 units that were 60% complete in ending work in process inventory. The unit materials cost was $5.00 and the unit conversion cost was $4.00 for the month. What was the total cost for units started into production during the month?

Answer 1

Answer: Option D $97,282 is correct

Explanation:

Materials Conversion

Units completed and transferred 12200 12200

Ending work in process 4900 2940 =4900*60%

Equivalent units 17100 15140

Materials Conversion Total

Equivalent units 17100 15140

X Cost per Equivalent unit 5.00 4.00

Total costs 85500 60560 146060

Total costs 146060

Less: Cost of beginning work in process 48778 =24012+24766

Cost of units started into production 97282