Question
Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,400 models. During the month, the company completed 11,000 models, and transferred
Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,400 models. During the month, the company completed 11,000 models, and transferred them to the Distribution Department. The
company ended the month with 2,800 models in ending inventory. There were 3,400 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout
theiproduction process. The FIFO method of process costing is being followed. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 55% complete as to conversion costs.
Beginning inventory.
Direct materials costs $20,000
Conversion costs $11,000
Manufacturing costs added during the accounting period:
Direct materials costs $70,700
Conversion costs $241,000
What is the cost assigned to ending inventory during October? (Round intermediary calculations to the nearest cent.)
O A. $61,345
O B.
$64.885
O C. $50.795
O D. $46,861
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