Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

$55,000

Explanation:

Calculation for the total cost assignable to the ending work in process inventory

First step is to calculate the ending Materials Cost:

Ending Materials Cost = [(2,500 units × $10]

Ending Materials Cost = $25,000

Second Step is to calculate the ending Conversion Cost:

Ending Conversion Cost = [(2,500 units × 40%) × $30]

Ending Conversion Cost = [(1,000) × $30]

Ending Conversion Cost = $30,000

Last step is to calculate the total cost assignable to the Ending work in process inventory cost using this formula

Ending work in process inventory cost = Ending Materials Cost + Ending Conversion Cost

Let plug in the formula

Ending work in process inventory cost = $25,000 + $30,000

Ending work in process inventory cost = $55,000

Therefore the total cost assignable to the ending work in process inventory is $55,000

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answer; at prices that violate government price regulations;