Question: Cloud Nine International uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Units Beginning work in 26,000 (70 percent complete for conversion costs) process Units started 180,000 Units transferred out 191,000 Ending process work in 15,000 (60 percent complete for conversion costs) Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory of Could Nine International would be: a. $147,000. b. $165,000. c. $123,000. d. $195,000.
Question: Cloud Nine International uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Units Beginning work in 26,000 (70 percent complete for conversion costs) process Units started 180,000 Units transferred out 191,000 Ending process work in 15,000 (60 percent complete for conversion costs) Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory of Could Nine International would be: a. $147,000. b. $165,000. c. $123,000. d. $195,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cloud Nine International uses a process costing system. Assume that
direct materials are added at the beginning of the period and that
direct labor and overhead are added continuously throughout the
process. The company uses the average costing method. The
following data are available for one of its accounting periods:
Units
Beginning work in 26,000 (70 percent complete for
conversion costs)
process
Units started
180,000
Units transferred out 191,000
Ending
process
work in 15,000 (60 percent complete for
conversion costs)
Assume that you have calculated a direct materials cost per unit of
$5 and a conversion cost per unit of $8. Under this assumption, the
ending balance for Work in Process Inventory of Could Nine
International would be:
a. $147,000.
b. $165,000.
c. $123,000.
d. $195,000.
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