MegaRock produces quick setting concrete mix. Production of 207,840 tons was started in April, 195,440 tons were completed. Material costs were $3,152,640 for the month while conversion costs were $594,200. There was no beginning work-in-process; the ending work-in-process was 70% complete. What is the cost of the product that remains in work-in-process

Question

Mcknight

Business

10 February, 06:05

MegaRock produces quick setting concrete mix. Production of 207,840 tons was started in April, 195,440 tons were completed. Material costs were $3,152,640 for the month while conversion costs were $594,200. There was no beginning work-in-process; the ending work-in-process was 70% complete. What is the cost of the product that remains in work-in-process

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Jadon Simmons · Answer 1

The cost of the product that remains in work-in-process is $212,906

Explanation:

MegaRock started to produce 207,840 tons in April and 195,440 tons were completed.

The ending work-in-process (tons) = 207,840 - 195,440 = 12,400 tons

The ending work-in-process was 70% complete means that 70% complete as to conversion costs, and fully complete as to materials cost

The cost of the product that remains in work-in-process = Material costs + conversion costs = ($3,152,640/207,840 x 12,400) + 70% x ($594,200/207,840 x 12,400) = $188,090.5 + $24,815.5 = $212,906