Bentley Enterprisesuses process costing to control costs in the manufacture of DustSensors for the...Bentley...

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Accounting

Bentley Enterprisesuses process costing to control costs in the manufacture of DustSensors for the mining industry. The following information pertainsto operations for November. (CMA Exam adapted)
Units
Work in process,November 1^st 17,500
Started inproduction during November 115,000
Work in process,November 30^th 25,500

The beginning inventory was 70% complete as to materials and 10%complete as to conversion costs. The ending inventory was 90%complete as to materials and 30% complete as to conversioncosts.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $56,060; direct labor,$21,820; manufacturing overhead, $16,740.
Costs incurred during the month: direct materials, $483,000; directlabor, $197,880; manufacturing overhead, $406,160.

What are the total costs in the ending Work-in-Process Inventoryassuming Bentley uses weighted-average process costing?
Multiple Choice
$138,079.
$135,784.
$100,050.
$135,779.

Answer & Explanation Solved by verified expert

4.4 Ratings (912 Votes)

Correct answer------------$138,079.

Working

Reconciliation of Units
A	Beginning WIP	17,500
B	Introduced	115,000
C=A+B	TOTAL	132,500
D	Transferred out	107,000
E=C-D	Ending WIP	25,500

Statement of Equivalent Units(Weighted average)
		Material		Conversion cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	107,000	100%	107,000	100%	107,000
Ending WIP	25,500	90%	22,950	30%	7,650
Total	132,500	Total	129,950	Total	114,650

Cost per Equivalent Units (Weighted average)
COST	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost	$ 56,060	$ 38,560	$ 94,620
Cost incurred during period	$ 483,000	$ 604,040	$ 1,087,040
Total Cost to be accounted for	$ 539,060	$ 642,600	$ 1,181,660
Total Equivalent Units	129,950	114,650
Cost per Equivalent Units	$ 4.15	$ 5.60	$ 9.75

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated

Material	$ 4.15	22,950	$ 95,201.44	107,000	$ 443,858.56
Conversion cost	$ 5.60	7,650	$ 42,877.37	107,000	$ 599,722.63

TOTAL	$ 1,181,660	TOTAL	$ 138,079	TOTAL	$ 1,043,581

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Transcribed Image Text

In: AccountingBentley Enterprisesuses process costing to control costs in the manufacture of DustSensors for the...Bentley Enterprisesuses process costing to control costs in the manufacture of DustSensors for the mining industry. The following information pertainsto operations for November. (CMA Exam adapted)UnitsWork in process,November 1st17,500Started inproduction during November115,000Work in process,November 30th25,500The beginning inventory was 70% complete as to materials and 10%complete as to conversion costs. The ending inventory was 90%complete as to materials and 30% complete as to conversioncosts.Costs pertaining to November are as follows:Beginning inventory: direct materials, $56,060; direct labor,$21,820; manufacturing overhead, $16,740.Costs incurred during the month: direct materials, $483,000; directlabor, $197,880; manufacturing overhead, $406,160.What are the total costs in the ending Work-in-Process Inventoryassuming Bentley uses weighted-average process costing?Multiple Choice$138,079.$135,784.$100,050.$135,779.

	Units
Work in process,November 1^st		17,500
Started inproduction during November		115,000
Work in process,November 30^th		25,500