Bonita Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 30900 units in ending work in process, all of which are 70% complete as to conversion costs. All materials are added at the beginning of the process. How much are total costs to be assigned to ending inventory

Question

Business

Catherine Vega

11 March, 05:24

Bonita Company's Assembly Department has materials cost at $4 per unit and conversion cost at $8 per unit. There are 30900 units in ending work in process, all of which are 70% complete as to conversion costs. All materials are added at the beginning of the process. How much are total costs to be assigned to ending inventory

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Answers (1)

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Rene Lawson · Answer 1

Answer: $296,640

Explanation:

Total Cost assigned to inventory

Calculation

The Materials cost $4 per unit * 30,900 units = $123,600

Conversion cost = $8 * per unit * 30,900 units = $247,200

Completion Rate

$247,200 * 70 / 100=$173,040

Total Costs

= $123,600 + $173,040 = $296,640