At the start of July, Classic Car Wax Company had beginning Work in Process of 1,000 units
Question:
At the start of July, Classic Car Wax Company had beginning Work in Process of 1,000 units that were 90 percent complete with respect to material and 45 percent complete with respect to conversion costs. The cost of the units was \(\$ 7,200\) ( \(\$ 5,400\) of material and \(\$ 1,800\) of conversion costs). During the month, the company started production of 43,000 units and incurred \(\$ 243,480\) of material cost and \(\$ 91,120\) of labor and overhead. Cost per equivalent unit were \(\$ 6.10\) for material and \(\$ 2.30\) for labor and overhead (conversion costs). The cost of items completed was \(\$ 336,000\) ( \(\$ 244,000\) for materials and \(\$ 92,000\) for labor and overhead). Units in ending Work in Process are 20 percent complete with respect to material and 10 percent complete with respect to conversion costs.
Required
a. Prepare a reconciliation of units.
b. What is the cost of ending Work in Process?
Step by Step Answer: