Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nutella produces a single product - its signature hazelnut spread. Because it mass produces this product in identical batches, the company relies on a weighted

Nutella produces a single product - its signature hazelnut spread. Because it mass produces this product in identical batches, the company relies on a weighted-average process costing method to assign costs to inventory accounts.
Its beginning work-in-process inventory has 200,000 jars. Each jar was 25% complete with regards to conversion costs and 40% complete with regards to direct materials. These units have $180,000 worth of direct materials and $62,000 worth of conversion costs as of the beginning of the year.
During the year, the company added $673,000 of direct materials and $400,000 of conversion costs to its manufacturing process. It finished 580,000 jars of Nutella. It ended the year with 263,000 jars left in process, 70% complete with respect to direct materials and 60% complete with respect to conversion costs.
Required:
What is the total cost of the finished goods from this period?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started