Mannassass Company manufactures chairs. The following information was given for the company: $$\begin{array} { l r }
\text { units, beginning work in process } & 0 \
\text { units started } & 20,000 \
\text { units completed } & ? \
\text { units, ending work in process } & 5,000 \
\text { cost of direct materials } & \$ 440,000 \
\text { cost of conversion } & \$ 64,000
\end{array}$$ Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What cost is assigned to ending work in process?
A)$110,000
B)$126,000
C)$130,000
D)$114,000
E)none of the above

Question

Mannassass Company manufactures chairs. The following information was given for the company: $$\begin{array} { l r } 
\text { units, beginning work in process } & 0 \
\text { units started } & 20,000 \
\text { units completed } & ? \
\text { units, ending work in process } & 5,000 \
\text { cost of direct materials } & \$ 440,000 \
\text { cost of conversion } & \$ 64,000
\end{array}$$ Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What cost is assigned to ending work in process?
A)$110,000
B)$126,000
C)$130,000
D)$114,000
E)none of the above

Quizplus · Accepted Answer

The cost assigned to ending work in process is $114,000. This is calculated as follows:Cost of ending work in process = Cost of direct materials in ending work in process + Cost of conversion in ending work in processCost of direct materials in ending work in process = $440,000 x 100% = $440,000Cost of conversion in ending work in process = $64,000 x 20% = $12,800Cost of ending work in process = $440,000 + $12,800 = $114,000

Mannassass Company Manufactures Chairs Materials in the Ending Inventory Were 100 Percent Complete and the Company