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Cosby uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion.Total material costs amounted to $220,000; conversion costs were $414,000.60. The cost of goods completed is:A. $312,000.B. $414,000.C. $520,000.D. $634,000.E. some other amount.

Answer :

busyfingers1193

Answer:

E) some other amount.

Explanation:

The material costs are added at the beginning of the process.

Total Material Cost = $220,000 Material cost per unit = $220,000 / (40,000+15,000) = $4

Material cost of ending work in process = 15,000 units * $4 = $60,000.

Conversion costs are incurred evenly throughout the process.

Total Conversion Costs = $414,000

Total units for which conversion cost has been incurred = 40,000 + (15,000 * 40%) = 46,000 unitsConversion cost per unit = $414,000 / 46,000 units = $9.

Conversion cost of ending work in process = 6,000 units * $9 = $54,000.

Hence,

Total cost of ending work in process = $60,000 + $54,000 = $114,000

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