The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
A)$26,693
B)$69,888
C)$34,944
D)$20,966

Question

Quizplus · Accepted Answer

To calculate the cost of ending work in process inventory in the first processing department, we need to use the following formula:

Cost of ending work in process inventory = (Units in ending work in process inventory x Cost per equivalent unit) + Cost transferred in

We are given the following information:
- Units in ending work in process inventory: 3,000 units
- Cost per equivalent unit: $8.90
- Cost transferred in: $235,100

Using the above formula, we can calculate the cost of ending work in process inventory as follows:

Cost of ending work in process inventory = (3,000 units x $8.90) + $235,100
Cost of ending work in process inventory = $26,700 + $235,100
Cost of ending work in process inventory = $261,800

Therefore, the closest answer choice is A) $26,693.

The Cost of Ending Work in Process Inventory in the First