The ending inventory was 25 complete as to the conversion


1. A company uses process costing to assign product costs. Available inventory information for a period is as follows:

Inventory (in units) Material cost Conversion cost
Beginning 0
Started during the period 15,000 $ 75,000 $55,500
Transferred out 13,500
End of Period 1,500

The ending inventory was 25% complete as to the conversion cost. 100% of direct material was added at the beginning of the process. What was the total cost transferred out?

2. Alfredo Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June.

June 1, balance $12,000
June 30, direct materials 50,000

During the month of June, direct labor totaled $30,000, and $24,000 of overhead was applied to production. Finished Goods was debited $100,000 during June

Afredo Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still n process at the end of June, has been charged with manufacturing overhead of $3,400.

What was the amount of direct materials charged to Job number 83?

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Cost Accounting: The ending inventory was 25 complete as to the conversion
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