Edwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use FIFOmethod. Data for May 2021 are as follows: WIP, beginning inventory 5/1/2021 24,200 units Direct materials (100% complete) Conversion costs (75% complete)Started during December 83,600 unitsCompleted and transferred out 5/31/2021 79,200 unitsWIP, ending inventory 5/31/2021 19,800 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials $ 165,000 Conversion costs 84,480 Direct materials added 244,640 Conversion costs added 319,000 What amount of conversion costs is assigned to the ending Work-in-Process account for May?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 1CMA: During December, Krause Chemical Company had the following selected data concerning the manufacture...

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Edwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use FIFO
method.

Data for May 2021 are as follows:

WIP, beginning inventory 5/1/2021                   24,200 units
      Direct materials (100% complete)
      Conversion costs (75% complete)
Started during December                                    83,600 units
Completed and transferred out 5/31/2021          79,200 units
WIP, ending inventory 5/31/2021                       19,800 units
      Direct materials (100% complete)
      Conversion costs (65% complete)

Costs for December:
      WIP, beginning Inventory:
            Direct materials                                          $ 165,000
            Conversion costs                                              84,480
      Direct materials added                                         244,640
      Conversion costs added                                       319,000

What amount of conversion costs is assigned to the ending Work-in-Process account for May?