Reference no: EM132486977
Question - The USA Company manufactures flags in a single process. The following information is available:
Work in process inventory, Jan. 1 -0- units
Units started in production 18,000 units
Units completed and transferred out 12,000 units
Work in process inventory, Dec. 31 6,000 units
Production costs:
Direct materials $213,885
Direct labor $577,500
Manufacturing overhead $391,875
The units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
Compute the total cost of units in ending work in process inventory? What is the equation used? Would this be a conversion equation?