Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,400 models. During the month, the company completed 11,100 models, and transferred them to the Distribution Department. The company ended the month with 1800 models in ending inventory. There were 2500 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is being followed. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 55% complete as to conversion costs.

Beginning inventory:
Direct material costs $19,800
Conversion costs $10,900

Manufacturing costs added during the accounting period:

Direct material costs $70,700
Conversion costs $240,300

What is the cost assigned to ending inventory during October?

a. $31,804

b. $38,968

c. $41,590

d. $32,990

Answer rating: 100% (QA)

Equivalent unit Whole unit EUPmaterial EUPconversion Beginning inventory 2500 0 0 7... View the full answer