Beginning Work in Process Consists of 7,000 Units, 55% Complete

question 34

Multiple Choice

Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labor at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labor $1.50; overhead $2.00. The cost of the ending work in process is

• A) $2,500
• B) $2,850
• C) $2,700
• D) $4,000

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Definitions:

Organization Pattern

The structured arrangement or method used to order and present information in a logical, coherent manner.

Benefits

Advantages or positive outcomes that result from actions, policies, or services.

Yoga

A physical, mental, and spiritual practice or discipline that originated in ancient India, aiming to achieve tranquility, fitness, and consciousness.

Flexibility

The quality of being adaptable or variable in face of change or new circumstances.