Xtreme Sports makes baseball bats. The company buys wood as a directmaterial. The company's Shaping Department processes the bats, whichare transferred to the Coating Department where a sealant is applied. TheShaping Department began manufacturing 20,000 Babe Ruth sluggersduring the month of October. There was no beginning inventory.Costs in the Shaping Department for the month of October were:Direct materials $ 66,000Conversion costs 34,000Total $ 100,000A total of 16,000 bats were completed and transferred to the CoatingDepartment; the remaining 4,000 bats were still in the Shaping Process atthe end of the month. All of the Shaping Department's direct materialswere placed in process, but on average, only 25% of the conversion costwas applied to the ending work-in-process inventory.What is the cost of the work-in-process inventory in Xtreme Sports'Shaping Department at the end of October?Group of answer choices$15,200$5,200$25,000$34,000$21,200

Step 1: Calculate the equivalent units for direct materials:Direct materials: 20,000 (all units, as…

Answered: Xtreme Sports makes baseball bats. The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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