For the month of June, Starlight Chocolates had a cost per equivalent unit of $2.50 for materials and $0.40 for conversion costs in its Mixing Department.The company began June with 12,000 pounds of chocolate in production.By the end of the month, the company had completed 180,000 pounds of chocolate, and 9,000 pounds were in process.The in-process units were 100 percent complete with respect to material and 40 percent complete with respect to labor and overhead.How much is the cost of the ending Work in Process Inventory in the Mixing Department?
A)$23,940
B)$26,100
C)$22,500
D)$10,440

Question

Quizplus · Accepted Answer

The cost of the ending Work in Process Inventory can be calculated by considering the costs of materials and conversion costs for the units still in process at the end of the month. For the 9,000 pounds in process, materials are 100% complete, so the material cost is 9,000 pounds * $2.50 = $22,500. For conversion costs, they are 40% complete, so the conversion cost is 9,000 pounds * $0.40 * 40% = $1,440. Adding these together, $22,500 + $1,440 = $23,940.

For the Month of June, Starlight Chocolates Had a Cost