Process B had no opening inventory. 13,500 units of raw material were transferred in at $4.50 per unit. Additional material at $1.25 per unit was added to the process. Labor and overheads were $6.25 per completed unit and $2.50 per incomplete unit. If 11,750 completed units were transferred out, what was the closing inventory in process B (to 2 decimal places)?
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5y ago#1Please do not simply type out full questions and expect to be provided with a full answer. You must have an answer in the same book in which you found the question and so in future ask about whatever it is in the answer that you are not clear about. Then I will explain :-)
The closing WIP is 13,500 - 11,750 = 1,750 units.
Given that the WIP is incomplete with regards to labour and overheads, the value of the WIP is 4.50 + 1.25 + 2.50 = 8.25 per unit.
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