The NH Jones Manufacturing Company produces porcelain figurines. The molding department inspects damaged units when they are 65% complete. Direct materials are added at the end of the process, and direct labor and manufacturing overhead costs are incurred evenly throughout the process. The following is the May data for the department:

Initial units in process (1/3 of conversion costs) 3,390

Cost of beginning inventory of work in process US $6,271.50

Units that were transferred during the period 12,150

Costs transferred to you during the period US$20,290.50

Units transferred 11,000

Final units in process (60% of conversion costs) 3,040

Damaged units:

Normal 800

Abnormal 700

Added costs during the period:

Direct materials US $10,449.00

Direct labor US $3,420.63

Indirect manufacturing costs (applied) US$2,407.11

Additional information: Peps costing is used to account for beginning work-in-process inventory. The company's policy is to treat the cost of units damaged in production as a separate cost element in the department where the deterioration occurs.

What is the value of the lower cost normally assigned to: Beginning work-in-process inventory, units completed and transferred from the current period, and ending work-in-process inventory?

Answer rating: 100% (QA)

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