Information concerning the materials used in the Blending Department in November is as follows: If the ending work-in-process inventory is 75% complete,using the average cost method,what was the materials cost in Work in Process at November 30?
A)$7,852
B)$8,280
C)$6,120
D)$7,317

Question

Information concerning the materials used in the Blending Department in November is as follows:  If the ending work-in-process inventory is 75% complete,using the average cost method,what was the materials cost in Work in Process at November 30?
A)$7,852 
B)$8,280 
C)$6,120 
D)$7,317

Quizplus · Accepted Answer

To calculate the materials cost in Work in Process, we need to use the following formula:

Materials cost in WIP = (Materials cost in beginning WIP + Materials purchased during the month - Materials used during the month) * % of completion of ending WIP

Using the information provided:

Materials cost in beginning WIP = $2,400
Materials purchased during the month = $10,800
Materials used during the month = $6,720
% of completion of ending WIP = 75%

Plugging in the values:

Materials cost in WIP = ($2,400 + $10,800 - $6,720) * 75%
Materials cost in WIP = $8,280

Therefore, the best choice is B, with an explanation that we used the given formula and plugged in the provided values to calculate the materials cost in WIP for November.

Information Concerning the Materials Used in the Blending Department in November