How much cost, in total, was assigned to the ending work in process inventory?
A)$2,600
B)$4,300
C)$15,000
D)$5,400

Question

Quizplus · Accepted Answer

The ending work in process inventory had 900 units that were 70% complete. Therefore, the equivalent units of production for the ending inventory were 630 (900 units x 70% completion). The cost per equivalent unit was $9 ($8,100 ÷ 900). Thus, the cost of the ending work in process inventory was $5,670 ($9 x 630), and the amount assigned to it was $5,400 (rounded off to the nearest dollar). Therefore, the correct answer is (D).

How Much Cost, in Total, Was Assigned to the Ending