Use the following information to answer the following Questions
Forrest Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22.
-The cost of Forrest's completed production is:
A) $225,000.
B) $330,000.
C) $333,000.
D) $555,000.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

The cost of completed production is calculated by adding the total material cost to the total conversion cost for the completed units. Since materials are added at the beginning, all 15,000 completed units would have the material cost, and all would also have the conversion cost since conversion costs are incurred evenly throughout the process. The material cost for the completed units is 15,000 units * $15/unit = $225,000. The conversion cost for the completed units is 15,000 units * $22/unit = $330,000. Adding these together gives $225,000 + $330,000 = $555,000.

Use the Following Information to Answer the Following Questions