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At the start of July classic car wax company had beginning Work in Process of 2,500 units that were 90% completed with respect to matherial and 45% completed with respect to conversion costs. The cost of the units was $7,000($5,000 material and 2,000 of conversion costs.) During the month the company started production of 40,000 units and incurred $224,500 of material cost and $91,750 of labor and overheade. Costs per equivalent unit were $6.00 for material and $2.50 for labor and overhead (conversion cost.) The cost of items completed was $314,500 ($222,000 for materials and $92,500 for labor and overhead. Units in ending work in process are 25% complete with respect to material and 10% complete with respect to conversion costs.
a. Prepare a reconciliation of units
b. What is the cost of ending Work in Process?
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