# Information for the current month for Process D is shown below- Direct.docx

28 Jan 2023
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### Information for the current month for Process D is shown below- Direct.docx

• 1. Information for the current month for Process D is shown below. Direct materials are added at the beginning of the process. Beginning work in process is 50 percent complete as to conversion costs; ending work in process inventory is 40 percent complete. Determine the cost of ending work in process inventory. a. \$7,040 b. \$5,120 c. \$3200 d. \$3,760 Solution (a) Ending WIP = 5,000 units, 40% complete = 2,000 equivalent units (b) Material cost per equivalent unit = \$(6,400 + 31,740) / 79,000 = \$0.48 (c) Conversion cost per equivalent unit = \$(9,600 + 51,100) / 70,000 = \$0.87 (d) Total cost per unit = \$(0.48 + 0.87) = \$1.35 (d) Value of closing WIP (i) Materials = \$0.48 x 2,000 units = \$960 (ii) Conversion = \$0.87 x 2,000 units = \$1,740 (iii) Total value of ending WIP = \$(960 + 1,740) = \$2,700