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Question - Greeg Industries uses three operations in sequence to manufacture an assortment of flower baskets. In each operation, the same procedures, time and cost are use to perform that operation, regardless of the basket style being produced. During March, a batch of 500 baskets of style D and a batch of 800 baskets of style F were put through the first operation. All materials for a batch are introduced at the beginning of the operation for that batch. The cost shown below were incurred in March for the first operation (Assume WAC approach)
Direct Labor 4,450
Manufacturing Overhead 3600
Direct Materials
Style D 1200
Style F 2400
There were no inventories at the beginning of the month; 400 units of Style D and 600 Units of Style F were transferred to the next operation. The ending inventories were 30% and 60% complete for styles D and F respectively.
What is the total cost of the ending inventory in process for operation #1?
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