The following is an account for a production department, showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
A) $12,150.
B) $2,160.
C) $7,560.
D) $54,000.
E) $37,260.

Question

The following is an account for a production department, showing its costs for one month:  Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
A) $12,150. 
B) $2,160. 
C) $7,560. 
D) $54,000. 
E) $37,260.

Quizplus · Accepted Answer

Beginning WIP transferred out = $49,410 − $41,850 = $7,560
Cost to complete Beginning WIP = $7,560 − $5,400 = $2,160

The Following Is an Account for a Production Department, Showing