Information concerning the materials used in the Mixing Department in October is as follows: If the ending work-in-process inventory is 50% complete,using the average cost method,what was the materials cost in Work in Process at October 31?
A)$2,644
B)$2,700
C)$4,330
D)$4,811

Question

Information concerning the materials used in the Mixing Department in October is as follows:  If the ending work-in-process inventory is 50% complete,using the average cost method,what was the materials cost in Work in Process at October 31?
A)$2,644 
B)$2,700 
C)$4,330 
D)$4,811

Quizplus · Accepted Answer

Using the average cost method, the total materials cost incurred in October would be:

Beginning materials inventory + Materials purchased - Ending materials inventory
= $1,200 + $5,500 - ($700 + $1,350*50%)
= $6,700 - $1,025
= $5,675

Since the question is asking for the materials cost in Work in Process, we need to only consider the materials cost of the beginning and ending work-in-process inventory. We know that the ending work-in-process inventory is 50% complete, so we need to only consider 50% of the materials cost.

Materials cost in Work in Process at October 31 = ($1,200*30%) + ($2,225*50%) = $360 + $1,112.50 = $1,472.50

Therefore, the correct answer is B) $2,700.

Information Concerning the Materials Used in the Mixing Department in October