Chap004 (dragged) 18 - PROBLEM 4-29 (CONTINUED) 4. Cost of...

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Unformatted text preview: PROBLEM 4-29 (CONTINUED) 4. Cost of ending inventories: Cost of goods completed and transferred out: number of units transferred out total cost per .................... 1,000,000 equivalent unit $4.80 $4,800,000 Cost remaining in 12/31/x4 work-in-process inventory: Direct material: number of equivalent units of direct material cost per equivalent ........................ unit of direct material 310,000 $1.30 $403,000 cost per equivalent .................................. unit of conversion 148,800 $3.50 520,800 Conversion: number of equivalent units of conversion Total cost of 12/31/x4 work in process ...................................................... $923,800 Check: Cost of goods completed and transferred out............................ Cost of 12/31/x4 work-in-process inventory ............................... Total costs accounted for............................................................. $4,800,000 923,800 $5,723,800 The cost of the ending work-in-process inventory is $923,800. Ending finished-goods inventory: Of the 1,000,000 units completed during 20x4, 250,000 units remain in finished-goods inventory on December 31, 20x4. Therefore: $4,800,000 (250,000 ÷ 1,000,000) = $1,200,000* The cost of the ending finished-goods inventory is $1,200,000. *Also, $1,200,000 = 250,000 McGraw-Hill/Irwin Managerial Accounting, 6/e $4.80 per unit 2005 The McGraw-Hill Companies, Inc. 4-19 ...
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This note was uploaded on 03/28/2012 for the course ACC260 AAAJ0OKG00 taught by Professor Katrenataylor during the Spring '10 term at University of Phoenix.

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