Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs $ 11,500 Conversion costs $ 22,200 Percent complete with respect to materials 75% Percent complete with respect to conversion 65% Units started into production during the month 8,600 Units transferred to the next department during the month 7,800 Materials costs added during the month $ 159,300 Conversion costs added during the month $ 348,500 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 65% Percent complete with respect to conversion 50% The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to:
Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs $ 11,500 Conversion costs $ 22,200 Percent complete with respect to materials 75% Percent complete with respect to conversion 65% Units started into production during the month 8,600 Units transferred to the next department during the month 7,800 Materials costs added during the month $ 159,300 Conversion costs added during the month $ 348,500 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 65% Percent complete with respect to conversion 50% The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mullins Corporation uses the first-in, first-out method in its
| Beginning work in process inventory: | |
|---|---|
| Units in beginning work in process inventory | 700 |
| Materials costs | $ 11,500 |
| Conversion costs | $ 22,200 |
| Percent complete with respect to materials | 75% |
| Percent complete with respect to conversion | 65% |
| Units started into production during the month | 8,600 |
| Units transferred to the next department during the month | 7,800 |
| Materials costs added during the month | $ 159,300 |
| Conversion costs added during the month | $ 348,500 |
| Ending work in process inventory: | |
| Units in ending work in process inventory | 1,500 |
| Percent complete with respect to materials | 65% |
| Percent complete with respect to conversion | 50% |
The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to:
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