Question:
In the Shaping Department of the Hendrix Company, the unit materials cost is $5.00 and the unit conversion cost is $3.00. The department transferred out 8,000 units and had 1,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, what is the total cost to be assigned to the ending work in process?
1. $1,600.
2. $5,000.
3. $5,600.
4. $8,000.