Question

In the Shaping Department of Sheridan Company the unit materials cost is $2.00 and the unit conversion cost is $1.60. The department transferred out 8900 units and had 2000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is

Answer 1

Answer:

Ending Work in Process $ 4640

Explanation:

Sheridan Company

Shaping Department

Ending Work in Process $ 4640

Materials = 2000 units*$2= $ 4000

Conversion= 2000 units *20%* $1.6= 400*$ 1.6=$ 640

We find the cost of ending inventory by multiplying the materials unit cost with the materials units and the unit conversion costs with the equivalent conversion units.All materials are included because the materials are added at the beginning of the process.