Process inventory and the cost of items completed

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Magi Clean Vacuum produces a single product, a vacuum cleaner, in a continuous production process. At the beginning of production, 85 percent of materials are added; the other 15 percent are added immediately before transfer to the finished goods warehouse. Conversion costs are assumed to be added evenly throughout the process. At the end of February 2011, there were 10 vacuums in process, 70 percent complete as to labor and overhead. Ninety five vacuums were completed during the month. Assume that direct materials cost per equivalent unit during February was $2,000, labor cost per equivalent unit was $750, and overhead per equivalent unit was $1,500.

Required:

Determine the cost of the ending Work in Process inventory and the cost of items completed and transferred to Finished Goods inventory. 

Reference no: EM13935355

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