Question: 8 GT International uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Units Beginning work in process 26,000 (70 percent complete for conversion costs) Units started Units transferred out Ending work in process 180,000 191,000 15,000 (60 percent complete for conversion costs) Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory of GT International would be:

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 4E: Conte Chemical Co. uses the weighted average cost method. All materials are added at the start of...
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Question 8

Question: 8
GT International uses a process costing system. Assume that direct materials are added
at the beginning of the period and that direct labor and overhead are added continuously
throughout the process. The company uses the average costing method. The following
data are available for one of its accounting periods:
Units
Beginning work in process 26,000 (70 percent complete for conversion costs)
Units started
Units transferred out
Ending work in process
180,000
191,000
15,000 (60 percent complete for conversion costs)
Assume that you have calculated a direct materials cost per unit of $5 and a conversion
cost per unit of $8. Under this assumption, the ending balance for Work in Process
Inventory of GT International would be:
Transcribed Image Text:Question: 8 GT International uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Units Beginning work in process 26,000 (70 percent complete for conversion costs) Units started Units transferred out Ending work in process 180,000 191,000 15,000 (60 percent complete for conversion costs) Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory of GT International would be:
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