Schiller Company has unit costs of $2 for materials and $6 for conversion costs. There are 5,600 units in ending work in process which are 25% complete as to conversion costs, and fully complete as to materials cost. How much is the total cost assigned to the ending work in process inventory if the FIFO method is used?
A) $19,600
B) $44,800
C) $11,200
D) $8,400

Question

Quizplus · Accepted Answer

The total cost for materials is $2 per unit, and since all 5,600 units are fully complete as to materials, the cost is 5,600 units * $2 = $11,200. For conversion costs, only 25% of the 5,600 units are complete, so the cost is 5,600 units * 25% * $6 = $8,400. The total cost is $11,200 + $8,400 = $19,600.

Schiller Company Has Unit Costs of $2 for Materials and $6