The June 1 work in process inventory consisted of 5,300 units with $20,680 in materials cost and $17,320 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,800 units were started into production. The June 30 work in process inventory consisted of 8,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 11. What is the cost of ending work in process inventory for conversion

$22,145

Explanation:

First, calculate the equivalent units of production with respect to conversion costs.

Conversion Costs

Ending Work In Process (8,600 × 50%)                                          =   4,300

Completed and Transferred (34,500 × 100%)                                = 34,500

Equivalent units of production with respect to conversion costs = 38,800

Then Calculate the total Conversion Costs as follows :

Conversion cost in beginning work in process    $ 17,320

Add conversion costs added during the year :

Direct Labor                                                           $ 82,500

Overhead                                                              $100,000

Total Conversion Cost                                          $199,820

Finally, calculate the cost per equivalent unit for conversion and cost of ending work in process inventory for conversion

Cost per equivalent unit = Total Cost ÷ Total Equivalent Units

Therefore,

Cost per equivalent unit = $199,820 ÷ 38,800

                                         = $5.15

Therefore,

Cost of ending work in process inventory for conversion = 4,300 × $5.15

                                                                                              = $22,145

statement of owner's equity;

answer; (10%) commission;