Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr}
\text { Units, beginning work in process } &0\
\text { Units staited } &200\
\text { Units completed } &?\
\text { Units, ending work in process ( $ 40 \% $ complete) } &50
\end{array}$

-Refer to the figure.If a total of $11,050 in production costs were incurred,how much cost would be assigned to the units completed?
A)$3.250
B)$8,287.50
C)$9,750
D)$11,050

Question

Baynor Inc. manufactures desks. The following data was given for production in January:
$\begin{array}{llr}
  \text { Units, beginning work in process } &0\
 \text { Units staited } &200\
 \text { Units completed } &?\
 \text { Units, ending work in process ( $ 40 \% $ complete) } &50
\end{array}$

-Refer to the figure.If a total of $11,050 in production costs were incurred,how much cost would be assigned to the units completed?
A)$3.250
B)$8,287.50
C)$9,750
D)$11,050

Quizplus · Accepted Answer

The units completed are 150 (200 started - 50 in ending WIP). The cost assigned to completed units is calculated by subtracting the cost of ending WIP from total costs. Ending WIP is 50 units * 40% = 20 equivalent units. Cost per equivalent unit = $11,050 / (150 completed + 20 equivalent units) = $65. Therefore, cost assigned to completed units = 150 * $65 = $9,750.

Baynor Inc -Refer to the Figure