Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
The following is an account for a production department, showing its costs for one month:
A) $12,150.
B) $2,160.
C) $7,560.
D) $54,000.
E) $37,260.
B) $2,160.
Explanation: Beginning WIP transferred out = $49,410 - $41,850 = $7,560
Cost to complete Beginning WIP = $7,560 - $5,400 = $2,160
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