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    Calculating equivalent units and assigning costs

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    Inc had 800 units of product in its work in progress inventory at the beginning of the period. During the period 3,000 additional units of product were started. At the end of the period there were 1,500 units of product in work in process account. The ending work in process inventory was estimated to be 30% complete. The beginning work in progress inventory had a balance of $2,000. There were $42,000 of product costs added to work in process during the period. The amount of cost in ending work in process inventory is?

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    Solution Preview

    We first calculate the equivalent units. Starting work in process is 800 units and 3,000 units were started. So total units are 3,800. Of these 1,500 are in ...

    Solution Summary

    The solution explains how to calculate the equivalent units given the degree of completion and assigning the cost to the ending inventory