Chapter 20, Problem S20.10SE

To determine

Cost assigned to finished goods and closing work in process can be easily derived after calculating cost per equivalent units. We can calculate cost assigned to finished goods in the following way:

Number of units completed × Cost per equivalent unit

Similarly, cost assigned to closing work-in-process can also be derived by the following formula:

$\text{Number of Closing WIP Inventory*\% of completion*Cost per equivalent unit}$

To Determine:

Costs assigned to 38,000 units completed and transferred out and 24,000 units, 20% complete, in the ending Work-In-Process Inventory